According to a report, the much-awaited Goods and Services Tax Appellate Tribunals (GSTAT) might not be functional until mid-2025, as delays in state-level appointments and infrastructure allocation persist. Initially slated to commence operations by December 2024, the setup faces multiple challenges.
"Appointments to the state bench and supporting staff for the members are pending... This may take another six months," a senior government official told a popular news outlet, requesting anonymity.
Current Status of GSTAT Development
The GSTAT will feature 44 benches, each consisting of four members - three appointed by the central government and one by the state government. While applications and interviews for these positions have been completed, final verifications and shortlisting remain underway.
Additionally, real estate allocation is another significant hurdle, with only 50% of the tribunal locations identified to date. On the technology front, while the software systems for GSTAT are ready, the IT infrastructure is expected to be in place only by March 2025.
Leadership and Vision for GSTAT
The Centre had earlier appointed Sanjaya Kumar Mishra, former Chief Justice of the Jharkhand High Court, as GSTAT president in May 2023 for a four-year term. Experts anticipate that once operational, GSTAT will alleviate the backlog of GST-related cases in courts, providing much-needed relief to businesses.
Why Are GSTATs Important?
Since the implementation of GST in 2017, businesses and individuals have grappled with disputes related to tax rates, refunds, and compliance. In the absence of dedicated appellate tribunals, these cases often reached High Courts, adding to taxpayers' woes. To address this, the GST Council decided to establish GSTATs as part of the Central Goods and Services Tax Act, 2017.
GSTATs serve as specialized bodies designed to handle GST disputes. They function as the second appellate authority under GST laws, aiming to ensure quicker resolutions and uniformity in tax dispute rulings. The National Bench, based in New Delhi, is the apex authority, while state benches will manage regional cases.
Key Features of GSTAT
- Judicial Independence: Comprising Judicial and Technical Members from both the Centre and states.
- Simplified Procedures: Unlike traditional courts, GSTAT operates on principles of natural justice, free from the rigid rules of the Civil Procedure Code, 1908.
- Wide-Ranging Powers: Includes summoning witnesses, requiring documents, and admitting evidence via affidavits.
As India awaits the operationalization of GSTAT, its establishment is expected to be a significant step in streamlining GST compliance and dispute resolution, ensuring better coordination between the Centre and states while easing the burden on traditional courts.
CAclubindia
