Council likely to approve rules for functioning of GST appellate tribunals

The Goods and Services Tax (GST) Council is likely to approve key rules and procedures for the functioning of GST Appellate Tribunals (GSTAT) in its upcoming meeting on December 21, paving the way for operationalising these long-awaited tribunals. Sources in the GST Council confirmed the development, emphasising its significance for business and the judiciary.

“The GST Council will likely discuss and approve rules and procedures for the functioning of GST Appellate Tribunals. This will pave the way for early initiation of their operations, reducing the legal burden on courts and benefiting businesses,” a source told Moneycontrol.

The tribunal will feature a Principal Bench located in Delhi and 31 State Benches across the country. This decentralised structure is expected to enhance accessibility for litigants.

Once the rules are finalised, businesses and tax authorities will have a structured mechanism to appeal against orders passed by the Adjudicating Officer and the Appellate Authority (Commissioner of Appeals).
Since the introduction of GST in 2017, disputes arising under the regime have been piling up in high courts due to the absence of a dedicated appellate body. According to a parliamentary response, as of August 2023, a total of 14,227 GST-related appeals are pending across various courts.

Each tribunal bench will include a judicial member and a technical member. Judicial members, often retired high court judges, will bring expertise in legal procedures, while technical members, typically retired bureaucrats from ministries such as Finance or Law, will contribute subject-matter expertise. This composition mirrors other tribunals like the National Company Law Appellate Tribunal (NCLAT).

GSTAT will encompass the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) and State VAT tribunals, consolidating their functions under one framework.

The GSTAT has been established nearly seven years after the passage of the GST law in 2017, with administrative hurdles delaying its notification. However, Parliament’s approval of the Central Goods and Services Tax (Second Amendment) Bill, 2023, cleared the way for its implementation.