The Rajya Sabha granted approval on Wednesday to a crucial bill aimed at facilitating the establishment of Goods and Services Tax (GST) appellate tribunals (GSTAT). The approved Central Goods and Services Tax (Second Amendment) Bill, 2023, brings about pivotal modifications to the terms of appointment for tribunal members and introduces a minimum age cap of 50 years for both members and presidents of the tribunal.
Key Points
Approval Amid Opposition Absence
The bill secured approval in the Rajya Sabha in the absence of opposition members who had been suspended over the past few days. Finance Minister Nirmala Sitharaman moved the bill for discussion, highlighting its significance in refining the existing structure of the Central Goods and Services Tax (CGST) Act, 2017.
Amendments to CGST Act, 2017
The approved bill seeks to amend the Central Goods and Services Tax Act, 2017, with a specific focus on the levy and collection of CGST on intra-state goods and services transactions. The proposed amendments are crucial for enhancing the effectiveness of the GST appellate system.
Diversifying Eligibility for Judicial Appointments
One of the key aspects of the bill is the diversification of the pool of eligible candidates for judicial appointments to the tribunals. It introduces a provision allowing advocates with a minimum of 10 years of experience, particularly in matters related to indirect taxation, to serve as judicial members.
Age Criteria for Tribunal Members
The bill establishes a minimum age cap of 50 years for both members and presidents of the tribunal, ensuring a wealth of experience in these crucial roles. Additionally, it extends the age limit for the president of the tribunal from 67 to 70 years and for members from 65 to 67 years.
Urgency for Amendments
Emphasizing the urgency for these amendments, the bill underscores that the non-constitution of GSTAT deprives taxpayers of a second appellate remedy. Currently, taxpayers are compelled to seek relief directly from the High Court, placing an undue burden on them. The bill aims to streamline the process and enhance the efficiency of the GST appellate system.
Current Status of Tribunal Setup
Presently, 28 tribunals are in the process of being set up, making the amendments timely and critical for the effective functioning of the GST appellate tribunals.
Conclusion
The approval of the Central Goods and Services Tax (Second Amendment) Bill, 2023, by the Rajya Sabha marks a crucial step toward strengthening the GST appellate system. The introduced amendments, focusing on eligibility criteria and age limits for tribunal members, reflect a commitment to enhancing the efficiency and accessibility of the GST appellate process. The urgency highlighted in the bill underscores the importance of providing taxpayers with a streamlined and effective second appellate remedy.
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