In a recent interview, Revenue Secretary Sanjay Malhotra disclosed that the long-awaited Goods and Services Tax (GST) Appellate Tribunals, aimed at resolving taxpayer disputes within the indirect tax framework, are on the cusp of commencing operations. Malhotra indicated that these tribunals could potentially begin functioning around July or August, marking a significant milestone in the evolution of India's tax administration.
Malhotra elaborated on the progress made, stating, "The process has been initiated. Very soon, you are going to see an advertisement in the media for the process of selection of the members and the president. And we hope that, quickly, in a period of six months or so from now, we are able to put some of the tribunals in place."
These tribunals, designed to serve as the second appellate authority for hearing appeals against orders passed by the Appellate Authority under the Central and State GST laws, have been eagerly awaited since the introduction of the GST framework on July 1, 2017. The absence of these tribunals has forced taxpayers to seek relief from High Courts, resulting in a backlog of cases. By October 31, the number of pending appeals under central GST laws had surged to approximately 15,000, underscoring the pressing need for the establishment of these tribunals.
Initially slated for inauguration in late 2023 or early 2024, the process faced delays due to discrepancies in eligibility and age criteria for tribunal members and presiding officers. Amendments to rectify these issues were finally cleared by the GST Council, chaired by Finance Minister Nirmala Sitharaman, during the winter session of Parliament in December. The amended provisions were brought in alignment with the Tribunal Reforms Act of 2021, paving the way for the establishment of these crucial adjudicative bodies.
Sitharaman highlighted the adverse impact of the delay, noting, "Non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts."
Furthermore, taxpayers have been encouraged to transition their GST-related cases from High Courts and the Supreme Court to the forthcoming GST appellate tribunals to expedite the resolution process. This move is anticipated to alleviate the burden on the higher judiciary while providing taxpayers with a more efficient avenue for redressal.
With 31 benches set to be established across 28 States and eight Union Territories, the imminent commencement of GST Appellate Tribunals heralds a new era in India's tax dispute resolution mechanism. As the government progresses towards their operationalization, taxpayers can look forward to a streamlined and expeditious process for resolving GST-related grievances.
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