Introduction
The non-constitution of GSTAT (Goods and Services Tax Appellate Tribunal) has led to a growing backlog of GST appeals across India. Without this critical second-level appellate body, taxpayers are turning directly to High Courts—overburdening the judiciary and disrupting the intended GST dispute resolution mechanism.
In this blog, we break down recent court rulings, statutory challenges, and what you should do if you’re stuck in limbo due to the absence of GSTAT.
What is GSTAT and Why It Matters
GSTAT is the national appellate authority established under Section 109 of the CGST Act, 2017. It is meant to handle appeals against orders passed by the Appellate Authority or Revisional Authority under GST laws.
Key Roles of GSTAT:
- Hear appeals under Sections 112 to 117
- Provide a uniform interpretation of GST laws across states
- Reduce High Court workload by resolving routine tax matters
Legal Basis:
- Constitution empowered the creation of tribunals under Article 323B
- CGST (Amendment) Act, 2023 notified new tribunal rules
- Yet, full operationalisation is still pending as of mid-2025
How GSTAT’s Absence Impacts Litigation
Without GSTAT, appellate litigation has no dedicated forum, especially for:
- Refund denials
- Classification disputes
- Input Tax Credit reversals
- Penalty and interest claims
Practical Issues Faced by Taxpayers:
- High litigation cost: Direct appeals to High Courts are expensive
- Delay in justice: Appeals pending for over 2–3 years in some states
- Inconsistent rulings: No centralised body = divergent HC decisions
Case Digest: Key High Court Rulings Affected by GSTAT Delay
Here are a few landmark judgments highlighting how courts are handling GST appeals in absence of GSTAT:
| Case Name | Court | Observation |
|---|---|---|
| LGW Industries Ltd. v. UOI | Calcutta HC | Allowed writ in absence of GSTAT; held that alternate remedy isn’t available when Tribunal isn’t operational |
| Nirmal Constructions v. UOI | Bombay HC | Directed GST department not to enforce recovery as no appellate remedy was available |
| Ankita Enterprises v. UOI | Allahabad HC | Taxpayer permitted to file writ; SC also noted lack of GSTAT as a valid ground |
Legal Angle:
These courts referred to the “doctrine of alternate remedy” and relaxed its application, allowing writs under Article 226 of the Constitution, solely because the statutory appeal under Section 112 could not be exercised.
Government Updates on GSTAT Constitution
As per CBIC update (Feb 2024):
- 31 state benches proposed
- Delhi and Mumbai to get Principal Benches
- Notification awaited for appointment of members
Despite this, no full bench constituted till May 2025 due to:
- Delay in selection process
- Inter-state consensus issues
- Pending infrastructure setup
Expert View: What Should Taxpayers Do?
CA Ramesh Bafna, GST Consultant:
“Taxpayers must preserve their appellate rights by filing appeals even if GSTAT isn’t functional, and simultaneously file a writ petition in the High Court explaining the delay and seeking interim protection.”
Best Practices to Navigate the Situation
- Timely file appeals with proper limitation notes
- Maintain complete records of proceedings and acknowledgements
- Consult legal experts to assess if writ petition is a viable remedy
- Monitor tribunal updates on cbic.gov.in
Summary
GSTAT delay is forcing taxpayers to seek relief through High Courts, increasing legal costs and delays. Know key rulings and how to protect your rights.
FAQ: GSTAT and Appeals
Q1: Can I go to High Court if GSTAT isn’t functional?
Yes. Multiple HCs have allowed writs in such cases, citing lack of alternate remedy.
Q2: Will delay in filing appeal be condoned later?
Uncertain. File appeal on time to preserve rights and attach a note on GSTAT non-constitution.
Q3: Is there a fixed date for GSTAT launch?
As of May 2025, the exact operational date remains unannounced.