GSTAT: An urgent necessity, and an opportunity

Published: 6th Jun, 2022

Context

The GST Appellate Tribunal is already much-delayed, and the apex court has directed the government to set it up swiftly.

About

Goods and Services Tax Appellate Tribunal

GSTAT would serve as the forum of second appeals to do with the applicability of GST, and will also be the first common forum of dispute resolution between the Centre and the States.
It will be situated in New Delhi.

Composition

The tribunal has been established under Chapter XVIII of the CGST Act which provides for the Appeal and Review Mechanism for dispute resolution under the GST Regime.
Section 109 under CGST Act empowers the Central Government to constitute, on the recommendation of Council, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority.
It will be presided over by its president. It will consist of a technical member from the Centre and a representative of the States.

Aim and Functions

Twin functions of second appellate and first common forum between centre and states

The appeals against the orders in first appeals issued by the Appellate Authorities under the Central and State GST Acts lie before the GST Appellate Tribunal, which is common under the Central as well as State GST Acts.
The disputes that state tribunals would be looking at would be appeals under GST law wherein the taxpayer is contesting the tax demand put by the tax department. The appeal based on the assessment would be made to the Commissioner (Appeals) if not satisfied at the state level and from there it would go to the Apellate Tribunal.
Being a common forum, GST Appellate Tribunal will ensure that there is uniformity in redressal of disputes arising under GST, and therefore, in implementation of GST across the country.

The national bench of the GST Appellate Tribunal will expedite resolution of disputes under GST laws. Being a common forum, GST Appellate Tribunal (national bench) will ensure that there is uniformity in redressal of disputes arising under GST.
The appellate authority is being seen crucial as a forum for higher appeal for disputes under the indirect tax regime and will also help in resolving the confusion created by contradictory rulings given by Appellate Authority for Advance Rulings (AAAR) on the same or similar issues in different states.

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What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India.
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
What is GST Council?
Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.

What is Appellate Authority for Advance Rulings (AAAR)?

Any advance tax ruling is a written interpretation of tax laws. It is issued by tax authorities to corporations and individuals who request for clarification of certain tax matters.
An advance ruling is often requested when the taxpayer is confused and uncertain about certain provisions. Advance tax ruling is applied for, before starting the proposed activity.
The applicant or the officer aggrieved by any advance ruling can appeal to the Appellate Authority. Appeal against advance ruling must be made within 30 days (extendable by 30 days) from the date of the advance ruling.

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