GST Appellate Tribunal: Panacea for Disputes?
The GST Appellate Tribunal is finally seeing the light of day after years of delay. For lakhs of pending appeals under GST, this could be the much-needed solution taxpayers have waited for. With its legal foundation under Section 109–114 of the CGST Act, 2017, and constitutional backing from Article 323B, the Tribunal is poised to reduce High Court load and fast-track indirect tax justice.
But is it really a panacea?
Let’s break it down.
What is the GST Appellate Tribunal?
The GST Appellate Tribunal (GSTAT) is the second appellate authority for GST matters — between the First Appellate Authority and the High Courts. It provides taxpayers an independent forum to challenge orders of appellate or revisional authorities under the CGST and SGST Acts.
Legal Framework Behind the Tribunal
- Constitutional Basis: Article 323B empowers Parliament to set up tribunals for tax matters.
- Statutory Provisions: Sections 109–114 of the CGST Act, 2017 deal with the GSTAT.
- Recent Developments:
- GST Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023 notified.
- GSTAT (Procedure) Rules, 2025 expected to notify filing, limitation, and procedural aspects.
- Finance Act, 2023 amended the CGST Act to operationalise the tribunal.
Key Features of GST Appellate Tribunal
| Feature | Details |
|---|---|
| Jurisdiction | National Bench + State Benches (one per state/UT) |
| Composition | Judicial Member + Technical Members (Centre & State) |
| Appeal Limit | Orders exceeding ₹50 lakh (except for classification) |
| Filing Limitation | 3 months from appealable order (extendable by 3 months) |
| No Civil Court Jurisdiction | As per Sec 113, civil courts have no jurisdiction |
Is It the Silver Bullet for GST Litigation?
Vivek Johri, former CBIC Chairman, rightly pointed out in his article that institutional efficiency matters more than just setting up a forum. For the Tribunal to work:
- Benches must be staffed timely
- Technical members should be neutral — not merely departmental extensions
- Digital filing and cause-list access must be smooth
GST Appellate Tribunal and Recent Legal Challenges
- Patel Hardware v. UoI (Jharkhand HC): Highlighted lack of tribunal as a denial of natural justice.
- Writ flood: Over 50,000 pending GST appeals are in limbo due to absence of GSTAT.
- CBIC Clarification: Appeal time limit starts only after Tribunal becomes functional.
What Taxpayers Can Expect
- Faster Resolutions: Avoid delay-prone High Court filings.
- Lower Legal Costs: One-tier appellate structure saves time and money.
- Jurisdictional Clarity: State Benches prevent forum shopping.
- Specialisation: Tribunal judges will be GST-focused — unlike generalist courts.
Expert Tip: Prepare Early, Not Just Post-Notice
CA Anil Kumar, Indirect Tax Expert at Efiletax, advises:
“Even though the Tribunal is not yet functional, businesses should start preparing draft appeals now. Missing deadlines later will be costly.”
FAQs on GST Appellate Tribunal
Q1. Is GSTAT operational now?
No. Rules are notified, but benches are still being set up. Functionality expected in FY 2025–26.
Q2. Will all cases go to the Tribunal?
No. Only cases involving tax amounts above ₹50 lakh, barring classification and valuation, are eligible.
Q3. Can I appeal to High Court directly?
Only on substantial questions of law, and after GSTAT order. Until then, writs are being admitted in absence of tribunal.
Q4. Will State and Centre both be heard?
Yes. Both Technical Members represent Centre and State for balance in adjudication.
Final Thoughts: Tribunal Alone is Not Enough
The GST Appellate Tribunal offers structural relief. But to be a true panacea, it must ensure:
- Independence from tax departments
- Speedy appointment of members
- Clarity in procedural rules
- Better digital access to taxpayers
Until then, Efiletax helps you navigate GST appeals, notices, and compliance — without the legal jargon. Our team of experts prepares you from Day 1.
Need help with GST appeal or reply drafting? Contact Efiletax today
Summary
The GST Appellate Tribunal is India’s second-level authority for GST disputes. With High Courts overburdened and appeals pending, the Tribunal offers a specialised, faster resolution forum. But unless implemented with independence and digital ease, it may fall short of being a true fix.