Goods and Service Tax Appellate Tribunal (GSTAT)

Need of the hour

Significance of GSTAT

• 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.