The Union Cabinet has recently given its approval for the establishment of a National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), which is set to be located in New Delhi. This benchmark decision aims to consolidate dispute resolution between the Centre and the various States, thereby ensuring seamless implementation of the Goods and Services Tax (GST) laws.
Construction and Role of the GSTAT
The new National Bench of the Appellate Tribunal will sit in New Delhi, presided over by a President and comprised of one Technical Member representing the Centre and one Technical Member representing the State. This formation stands crucial as it acts as the second form of appeal within GST laws and serves as the first common forum for dispute resolution.
The Appeal Process Under the GST Regime
The Central GST (CGST) and State GST (SGST) Acts establish that any appeals against initial appeal orders should be brought before the GST Appellate Tribunal. The CGST Act introduces a structure for appealing and reviewing disputes under the GST Regime and grants the Central Government the authority to constitute an Appellate Tribunal, referred to as the Goods and Services Tax Appellate Tribunal. As per the Act, this tribunal will hear appeals against orders passed by the Appellate Authority.
| CGST Act Provision | Description |
|---|---|
| Appeal and Review Mechanism | Framework for disputing resolution under the GST regime |
| Constitution of Appellate Tribunal | Central Government empowered to establish the Goods and Services Tax Appellate Tribunal by notification |
| Hearing of Appeals by Tribunal | Tribunal to hear appeals against orders passed by the Appellate Authority |
Benefits of a Unified GST Appellate Tribunal
The establishment of a unified GST Appellate Tribunal holds significant advantages. It is primarily designed to decide on cases where divergent orders exist at the state level, thereby ensuring uniformity in the resolution of disputes arising under GST. As such, it plays an instrumental role in implementing GST uniformly across the country. Importantly, the forum takes on an added layer of importance considering the potential for conflicts between different states and with the central government over indirect tax revenues.
Please note that this system is not only poised to streamline dispute resolution but also to strengthen the fabric of our cooperative federalism by maintaining a fair balance between the Centre’s and State’s rights and obligations concerning indirect taxes.
