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GST News Details

Nod for Setting Up of GST Appellate Tribunals, to Help in Reducing Appeals

NEW DELHI: The Centre will soon set up appellate tribunals for resolving disputes linked to the Goods and Services Tax (GST) with finance minister Nirmala Sitharaman moving amendments in the Finance Bill on Friday for setting up such entities.

Last month, the GST Council had approved the setting up of such tribunals for hearing appeals against the orders passed by the appellate authority or the revisional authority. The setting up of the GST Appellate Tribunal has been an area of dispute between the Centre and states and it had taken several months for them to come on board.

According to the Finance Bill, which was approved by the Lok Sabha on Friday, the government will set up a principal bench of the appellate tribunal in New Delhi which will consist of a president, a judicial member and two technical members representing the Centre and state. It also said that on the request of states, state benches will be set up, which will include two judicial members, and two technical members representing the Centre and state.

In February, revenue secretary Sanjay Malhotra had said that while one member will decide cases with disputes of up to Rs 50 lakh, cases above the threshold will be adjudicated by one technical member and one judicial member.

“It is interesting to note that the issues relating to place of supply are specially reserved for adjudication by the Principal Bench. One other interesting proposal is in relation to adjudication of disputes below the disputed amounts of Rs 50 lakh by a single member bench, which should help in early disposal of appeals and reduce the burden on the regular two member bench,” said Shashi Mathews, partner at IndusLaw.

Experts said the setting up of appellate tribunals will help in resolving pending cases and reduce the burden on industry. They said matters which would otherwise be before high courts would now be referred to the GST Appellate Tribunal.

“The amendments relating to the constitution of the GST Appellate Tribunals would result in several matters, which otherwise would be before the HCs, being referred to the GSTAT. Businesses should start preparing for matters where an appeal is to be filed before the tribunal as there is likely to be a large number of cases that would be filed soon,” said MS Mani, partner at consulting firm Deloitte India.