Introduced in July 2017, replacing a set of Central and State taxes such as Central excise, State value added tax (VAT), Service tax etc.
Destination-based consumption tax wherein Centre and State simultaneously levy tax on a common base
Significant increase in number of compliant GST payers with average monthly GST collection of INR 1.5 lakh crore in FY 2022-23
Sharpened checks and balances by tax authorities, with significant reduction of manual intervention
Integrated technology and introduced e-invoicing, e-filing of refunds, online appeals and auto approved letter of undertaking (LUT) etc.
GST Appellate Tribunal (GSTAT) to be set-up for smooth functionating of GST
Supreme Court
• Cases decided by principal bench of appellate tribunal
• High Court
High Court
Appellate Tribunal
Appellate Authority
• Appeal against the order passed by state appellate tribunal
• Appeal for cases involving question of law
Jurisdictional officers
• Appeal against order passed by appellate authority and revisional authority
• Consisting of State benches and Principal bench
• Consist of Commissioner (Appeals) or Joint Commissioner (Appeals)
• Appeal against order passed by adjudicating authorities
• Order to be passed within 3 years (5 years in case of fraud) from the due date of annual return
Need of the hour
• First common forum for resolving disputes from State & Centre perspective
• Disputes regarding levy, valuation, classification, eligibility of credit (including transitional credits) and refunds are increasing
• Departmental audit, investigation, enquiry and scrutiny leading to increased disputes
Increasing trend in GST disputes
Hardships faced by taxpayers
• Aggrieved taxpayer has to approach High Court through writ, post receipt of an order from an Appellate Authority
• Due to pending backlog, High Courts are unable to dispose off the matters expeditiously
• Almost 6 years of implementation of GST, discussions around setting up GSTAT are still in progress
• Expected to see increase in number of litigations in near future as the limitation period of three years from the due date of the annual return for FY 17-18 and FY 18-19 is fast approaching
GSTAT – pressing priority
Issues faced in constitution of GSTAT
Parity of share of members between State and Center
Number and constitution of benches
Qualification and experience criteria of technical members
Issues
Constitution of a search cum selection committee
Ratio of judicial and technical members
Eligibility of lawyers to be appointed as judicial members
In the absence of GST Tribunal, taxpayers are compelled to evaluate the appropriateness of approaching High Court based on the merits, monetary impact and potential exposure.
Constitution of Group of Ministers (GoM) to recommend necessary amendments
Amendments proposed in Finance Bill 2023 presented before Lok Sabha
Extension of timeline to file appeal, based upon setting up of GST appellate tribunal
Resolved issue relating to the ratio between judicial and technical members and parity of share of members between state and center
Each bench consist of judicial and technical member in equal proportion
States with less than 5 crore population should have maximum 2 benches and no State to have more than 5 benches
Qualification of members and terms of appointment and re-appointment
Bench Constitution
National bench (In New Delhi)
A president and one technical member each from State and Centre
Bench Constitution
Principal bench (In New Delhi)
A president, a judicial member and one technical member each from State and Centre
Regional bench (based on notification issued by Government)
State bench
(bench in each State based on notification issued by Government)
Area bench (based on receipt of request from any State Government or recommendation of council)
A judicial member and one technical member each from State and Centre
State bench (based on the request of States and recommendations of Council)
Place of supply cases to be heard by this bench only
Two judicial members and two technical members representing the State and Centre
• Advocates having more than ten years of experience are being considered for selection as judicial members in Income Tax Appellate Tribunal, CESTAT, the Sales Tax /VAT Tribunals
• Proposed amendment can be challenged by lawyers
Amendments to be notified
• Proposed amendments are yet to be notified
• Another 10 months will be required for GSTAT to be fully functional
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