Taxpayers can withdraw court cases, ‘approach GST Tribunals for faster rulings’

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Last Updated21/12/2023

The Finance Minister recently announced that taxpayers can shift their GST-related cases from High Courts and the Supreme Court to the upcoming GST appellate tribunals for quicker resolutions.

The Finance Minister acknowledged concerns about glitches, difficulties faced by taxpayers, and the complexity of multiple tax rates.
She mentioned that rationalization of rates is part of a larger exercise undertaken by the GST Council, with a Group of Ministers formed for this purpose.

The Central Goods and Service Tax Act, 2017, Section 109 mandates for the constitution of a GSTAT and its Benches.
The GSTAT will be the specialized appellate authority for resolving disputes under the GST laws.
The Central Goods and Services Tax (Second Amendment) Bill, 2023 aligns eligibility and age norms for members and the President of Appellate Tribunals with the Tribunal Reforms Act of 2021.

The GST Tribunal will have one principal bench in New Delhi.
Each state will have two tribunal benches.
- One located in the state capital
- Other located in key commercial centers based on state inputs.
North-eastern states could opt for one bench for 2-3 states and an additional bench for very far-flung areas.
Members: Two technical and two judicial members each, with equal representation from the Centre and states.
However, all four members would not sit for hearing each case.
- It depends on the threshold or value of dues involved.

Expedite the process of adjudication
Provide tax certainty especially in recurring litigative issues.
Help in bolstering business sentiments and ease of doing business in the country.