GST Appellate Tribunals

GST Appellate Tribunals

The Group of ministers (GOM) set by the Goods and Services Tax (GST) Council yesterday cleared the framework for the appellate tribunals. The tribunals will hear disputes, with more than one bench in a state. 

The principal bench of Goods and Services Tax Appellate Tribunals (GSTAT) is proposed in New Delhi. The large states can have five benches to look into the matters. Moreover, the authority suggests relaxation in the criteria of appointment of members. 

The Indian GOM is headed by Haryana, Deputy Chief Minister. Mr Dusyant Chautala will submit the report to the GST council by next week. 

The council will take a final call on the recommendations in September. Also, it added that once the GST council accepts the suggestions, appellate bodies can be set in union territories and states. 

GST Pending Demand

Industries have several times raised the demand for GSTATs. It has flagged the urgency to dispose of the cases. Without the tribunals, GST disputes were straight taken to the high courts after adjunctions by the officials. 

The process created delays and dragged the disputes. 

MS Mani, partner, Deloitte India, said, “Since five years have been completed, and several interpretational issues have cropped up, it is essential that GST tribunals begin functioning soon with an adequate number of benches,”. 

Also, he adds, “This may necessitate a review of the criteria to be adopted for selecting members, composition of the benches etc, all of which should be completed soon, so the benches are made functional.”

The GOM agrees with the states on reducing and relaxing the criteria for appointing technical members. The experience criteria have been pegged for 25 years in a draft with the Goods and Services Tax council being circulated. 

With the change, each state will have its criteria. Furthermore, it allows states to have more than one bench. The bases of bench set-up can be the population or the number of active state users.

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