GST Appellate Tribunal - UPSC Notes | Testbook.com

Unravelling the GST Appellate Tribunal (GSTAT)

The GST Appellate Tribunal (GSTAT), as per Section (109) of the Goods and Service Tax Act, 2017 (CGST Act) , is a mandated body constituted for handling disputes related to GST laws at the appellate level.

• The GSTAT is designed to be a specialized authority for resolving disputes pertaining to GST laws.
• The primary bench of the GSTAT will be based in New Delhi. However, the number of benches or boards that each state requires can be decided by the respective states, provided they have the approval of the GST council.
• The bench composition includes two judicial members and two technical members. The selection panel will comprise a senior judicial member from the State High Court.

For a broader understanding of the goods and services tax, you can refer to the linked article.

The Rationale Behind the GST Appellate Tribunal

• The absence of GST Appellate Tribunals led taxpayers to seek relief from High Courts through writ jurisdiction. However, High Courts may not have specialized benches for GST or may delay cases due to backlogs.
• Since GST was implemented in 2017, there have been varying interpretations of the GST law by taxpayers and authorities. This has led to disputes mainly around credibility (including transitional credits), levy, refunds, classification, and valuation.
• The GST Appellate Tribunal (GSTAT) was needed for the quick resolution of disputes, given the backlog of cases in recent years.
• Without a tribunal, aggrieved taxpayers had no alternative but to wait for justice while revenue authorities pursued their orders aggressively.

Advantages of the GST Appellate Tribunal

• The GST Appellate Tribunal (GSTAT) is more flexible and cost-efficient than regular courts, offering quicker justice. Its procedures are simple, making it a popular Alternative Dispute Resolution choice.
• GSTAT will aid both the Union and State Governments in reducing conflicts and ensuring uniformity in dispute resolution.
• With the goal of One Nation, One Tax, GST was designed to simplify taxation. The establishment of GSTAT is a step towards the government’s citizen-centric approach to taxation.
• GSTAT will indicate to the global community that India is taking measures to become more business-friendly and attract more trade and commerce.
• The establishment of GSTAT is anticipated to provide businesses with relief by offering an efficient process for resolving GST disputes.
• GSTAT will facilitate the “ease of doing business” and make India a more attractive destination for trade.
• An appropriate appellate structure in the form of GSTAT will provide an effective and speedy resolution of disputes, thereby reducing the burden on the judiciary.

Conclusion

• The GST Appellate Tribunal is a crucial institution established to manage GST-related disputes. Its extensive jurisdiction and simple procedure make it an effective platform for resolving disputes between taxpayers and tax authorities.
• The GST Appellate Tribunal is expected to play a pivotal role in the implementation of GST and in ensuring the smooth and efficient operation of the tax system.

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