Description

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Picture Courtesy: PIB

Context

The Union Finance Minister formally launched the Goods and Services Tax Appellate Tribunal (GSTAT).

What is the Goods and Services Tax Appellate Tribunal (GSTAT)?

Statutory body: Established under the Central Goods and Services Tax Act, 2017 (CGST Act).

Purpose: Hears appeals against orders passed by the Appellate or Revisional Authorities under the CGST Act and respective State/UT GST Acts.

Objective: Create a single, unified appellate forum for GST disputes — “One Nation, One Forum”.

Role: Ensures predictability, orderliness, and credibility of GST laws while minimizing litigation burden on High Courts.

Read all about: 56th GST Council Meeting Decision l GST REFORM: SIGNIFICANCE, CHALLENGES AND WAY FORWARD

Composition of GSTAT

Principal Bench (New Delhi):

President (Head)
Judicial Member
2 Technical Members (Centre + State).

State Benches (31 benches across 45 locations):

2 Judicial Members
1 Technical Member (Centre)
1 Technical Member (State).

Design Principles – The 3 S’s:

Structure – Mix of judicial + technical expertise.
Scale – State benches, single-member benches for simple cases.
Synergy – Technology, process efficiency, and human expertise.

Eligibility of Members

President: Former Supreme Court Judge or Chief Justice of a High Court.

Judicial Member: High Court Judge or District/Additional District Judge with 10 years’ service.

Technical Member (Centre): Indian Revenue Service (Group A) / All India Services (AIS) officer with 25 years’ service and 3 years’ GST experience in the Centre.

Technical Member (State): State officer/AIS above Additional Commissioner of VAT/First Appellate Authority, with 25 years’ service and 3 years’ GST/finance/taxation experience in State Govt.

Tenure & Age:

4 years.
President (max age 70 years).
Judicial/Technical Members (max age 67 years).

Functions of GSTAT

Equivalent to a Civil Court in trying cases.

Can hear appeals, impose penalties, revoke/cancel registrations.

Uses the e-Courts Portal for:

Online filing of appeals.
Case tracking.
Virtual hearings.

Benefits of GSTAT

Timely Justice: Faster resolution reduces cash flow blockages for businesses.

Uniformity: Ensures consistency in GST interpretation across India.

Reduces HC Burden: Provides a dedicated forum, easing case backlogs.

Digital Access: Promotes transparency and citizen-centric governance.

Business Confidence: Encourages MSMEs, exporters, and startups with efficient compliance.

Issues and Challenges

Delayed Establishment: GST was rolled out in 2017, but GSTAT came only in 2025 after multiple delays.

Judicial Independence: Concerns about dominance of technical members over judicial voices.

Capacity Concerns: Pending appeals are in lakhs; 31 benches may not suffice.

Coordination with High Courts: Overlap may continue if benches aren’t efficient.

Way Forward

Adequate Staffing & Infrastructure: Ensure timely appointments, digital case management, and strict timelines.

Balance of Judicial-Technical Expertise: Safeguard independence of decisions.

Capacity Building: Increase number of benches in high-demand states.

Awareness & Accessibility: Promote usage among small taxpayers.

Harmonization of Rulings: Develop mechanism for uniform interpretations across states.

Source: PIB

PRACTICE QUESTION

Q. Consider the following statements regarding the Goods and Services Tax Appellate Tribunal (GSTAT):

1. The Union Finance Minister launched GSTAT during the 56th GST Council meeting.

2. The tribunal hears appeals against orders passed by GST Appellate Authorities.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: C

Explanation:

Statement 1 is correct: Union Finance Minister Nirmala Sitharaman launched the Goods and Services Tax Appellate Tribunal (GSTAT) following a decision made in the 56th GST Council meeting held on September 3, 2025.

Statement 2 is correct: GSTAT functions as a specialized forum to hear appeals against orders passed by GST Appellate Authorities, with the primary objective of providing timely resolution of GST-related disputes.

Frequently Asked Questions (FAQs)

Any person or business dissatisfied with an order passed by the Appellate or Revisional Authorities under the CGST Act and State/UT GST Acts can appeal to the GSTAT.

GSTAT is a specialized quasi-judicial body with a mix of judicial and technical experts, designed to provide faster and more specialized adjudication of GST-related matters.

The maximum age for the President of GSTAT is 70 years.