Lok Sabha Passes Bill Extending Eligibility for President and Members of GSTAT

The Lok Sabha passed a bill to raise the age limit of the chairman and members of the GST Appellate Tribunal

The Lok Sabha has passed the CGST (Second Amendment) Bill, 2023 aimed at increasing the age limit for the chairman and members of the Goods and Services Tax Appellate Tribunal (GSTAT). The bill was passed by a unanimous voice vote. During the testing of the bill, FM Nirmala Sitharaman stressed the importance of aligning the judicial and technical operational status of GSTAT members with the provisions of the Judicial Reforms Act 2021. The main features of the bill are:

Age limit adjustment

Chairman of GSTAT

• Previous age: 67 years
• Revised age limit: 70 years

Members of GSTAT

• Previous age: 65 years
• Revised age limit: 67 years

Freedom for Taxpayers

Finance Minister Sitaraman highlighted a key part of the law that deals with taxpayers appealing GST demands in various high courts or the Supreme Court. The Act gives liberty to these taxpayers to withdraw their cases and approach GSTAT once the benches start functioning. The move is expected to streamline the judicial process and provide an efficient mechanism for resolving GST-related disputes.

Qualifications for Judicial Ministers

The Act has introduced specific provisions for the appointment of members of the judiciary of the GSTAT. A judge with 10 years of ‘substantial experience’ in unfair tax cases in the Court of Appeal will now be eligible for appointment as a judicial member. This action is aimed at enabling individuals with in-depth understanding of tax anomalies to contribute to the decision-making process under GSTAT.

The amended rules provide that the chairman and judicial and technical members of GSTAT will hold office for four years or till they reach the age of 70 years (chairman) and 67 years (members), whichever is earlier. This will replace the earlier age limit of 67 years and 65 years for chairperson and members respectively as per the rules announced earlier by the government.

Finance Minister Sitaraman emphasized that with the passage of this bill, the service conditions of the judicial and technical members of GSTAT are in line with the Judicial Reforms Act 2021 aimed at making the Court of Appeal more efficient and functional well the meets. This bill is expected to have far-reaching implications in adjudicating GST-related cases, and will provide a structured and robust mechanism for dispute resolution within the Goods and Services Tax regime.