Understanding the Goods and Services Tax Appellate Tribunal (GSTAT) in India

Since the implementation of the Goods and Services Tax (GST) in India, numerous disputes have emerged concerning its application, rates, and refunds. Initially, these complex GST-related issues were often escalated to High Courts due to the absence of dedicated dispute resolution bodies, posing significant challenges for taxpayers. To alleviate these difficulties and streamline the process, the GST Council sanctioned the establishment of the GST Appellate Tribunals (GSTATs). This article will explore the nature of the GSTAT, its composition, the eligibility and age criteria for its members, the application process for appealing to the Tribunal under GST, and other critical aspects.

Recent Developments regarding GSTAT

The 56th GST Council meeting in 2025 is anticipated to clarify whether the National Anti-Profiteering Authority (NAA) will be revived or if the GST Appellate Tribunal will be granted authority to handle new anti-profiteering complaints, particularly as discussions about potential GST rate and slab adjustments continue.

June 22, 2024 Update

During the 53rd GST Council meeting held on June 22, 2024, in New Delhi, the Council recommended specific monetary thresholds for filing appeals under GST:

• For GSTATs: Rupees 20 lakhs
• For High Courts: Rupees 1 crore
• For Supreme Courts: Rupees 2 crores

Furthermore, the GST Council proposed reducing the pre-deposit amount required for filing GST appeals. The maximum pre-deposit for appeals with the appellate authority was lowered from Rs. 25 crore each for CGST and SGST to Rs. 20 crore each. For appeals to the Appellate Tribunal, the pre-deposit was reduced from 20% (with a maximum of Rs. 50 crore each for CGST and SGST) to 10% (with a maximum of Rs. 20 crore each for CGST and SGST).

The Council also suggested amending Section 112 of the CGST Act, 2017. This amendment aims to allow the three-month period for filing appeals before the Appellate Tribunal to commence from a government-notified date, specifically for appeal or revision orders issued before that notification. This change will provide taxpayers ample time to file appeals for pending cases before the Tribunal. These modifications will become effective once officially notified by the CBIC.

Defining the GST Appellate Tribunal (GSTAT)

The GST Appellate Tribunal (GSTAT) is a specialized judicial body established to resolve disputes related to GST at the appellate stage. It serves as the second forum for appeals under GST legislation and marks the initial common platform for dispute resolution involving both the Central and State governments. The primary goal of the GSTAT is to ensure consistency in dispute redressal and facilitate prompt resolution of cases. The main bench of the GST Appellate Tribunal is situated in New Delhi.

Structure of the GSTAT

The GSTAT is structured with a National Bench located in New Delhi. This bench comprises a President, who serves as the head, along with one Judicial Member and two Technical Members—one representing the state and the other the Centre. Additionally, state-level benches may be formed, typically consisting of two Judicial Members, a Technical Member from the Central government, and a Technical Member from the state government.

GSTAT Regulations, Authority, and Responsibilities

Understanding the rules, powers, and duties of the GST Appellate Tribunal is crucial. These are outlined as follows:

• The Tribunal operates independently of the Code of Civil Procedure, 1908, but adheres to principles of natural justice and has the discretion to set its own operational procedures.
• The Tribunal holds powers analogous to a civil court under the Code of Civil Procedure, 1908, particularly regarding the summoning of individuals, requiring document submission, and accepting evidence through affidavits.
• It can request public records, appoint commissions for examining witnesses, and either dismiss or rule on representations due to non-appearance.
• Orders issued by the Tribunal are enforceable as if they were court decrees, and the Tribunal can initiate execution within its local jurisdiction.
• All proceedings before the Tribunal are classified as judicial proceedings. For specific legal contexts, the Tribunal is considered a civil court, in accordance with sections 193, 228, and 196 of relevant legal statutes.

Fees for GSTAT Appeals

Filing an appeal with the Appellate Tribunal incurs a fee. Appellants are typically required to pay the full amount encompassing the tax, fine, interest, and penalty specified in the initial order.

In cases of dispute, the applicant must now pay a pre-deposit of 10% of the disputed amount, up to a maximum of Rs. 20 crores each for CGST and SGST, as the GST appeal fee. This reduction was recommended by the 53rd GST Council meeting.

GSTAT Members

The government appoints members to the GST Appellate Tribunal, which includes a Judicial Member and two Technical Members (one for the Central government and one for the State government). The National Bench, presided over by the President, primarily addresses matters concerning the place of supply. Conversely, regional and state benches are responsible for appeals originating from their respective jurisdictions. The allocation of duties among members is determined by the President and the state President.

In the event of a member's absence, an appeal might proceed with two members, or in specific scenarios, even a single member. For administrative efficiency, the government retains the power to transfer members, recognizing the distinct functions and prerequisites for Central and State roles.

Eligibility and Age Requirements for GSTAT Members

Specific eligibility and age criteria govern the appointment of members to the GST Appellate Tribunal. The primary requirements are as follows:

• The President must currently be, or have previously served as, a Supreme Court judge or the Chief Justice of a High Court.
• A Judicial Member must be a High Court Judge or have served as an Additional District Judge or a District Judge for at least ten years.
• The Technical Member (Centre) should be a Group A officer from the Indian Revenue Service or an All India Service member with a minimum of three years' experience in Central Government GST administration, having completed twenty-five years in Group A services.
• The Technical Member (state) must be an All India Service officer or a state government officer holding a rank equivalent to or higher than an Additional Commissioner of Value Added Tax, and also above the First Appellate Authority. This member must have completed twenty-five years in Group A Services or equivalent and possess three years of experience in state government GST, finance, or taxation administration.
• The maximum age limits for GSTAT members are: seventy years for the President, sixty-five years for Judicial Members and state Presidents, and sixty-five years for Technical Members (whether Central or State).

Process for Appealing to the GSTAT

Taxpayers dissatisfied with a decision from the First Appellate Authority can submit an application to the Appellate Tribunal under GST for review.

Such applications, accompanied by the prescribed fee and FORM GST APL-05, must be filed within three months from the date of the initial appeal order. Submissions made beyond this period will not be accepted.

Upon successful registration of an appeal, the applicant receives an acknowledgment number. A comprehensive guide to the GST appeal process at the Tribunal can be found here.

Official GSTAT Web Portal

The official website for the GST Appellate Tribunal serves as a vital resource for taxpayers seeking information about the Tribunal or engaging in GST-related disputes. This online platform offers comprehensive details on the Tribunal's establishment, areas of authority, operational procedures, and published orders. It also provides various taxpayer-centric resources, such as a user guide, answers to common questions, and contact details.