Cabinet Gives NOD to set up GST Appellate Tribunal

Prelims level : Economy Mains level : Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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  • The Union Cabinet has approved the creation of a National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), which 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.


  • The National Bench of the Appellate Tribunal, to be situated in New Delhi, will be presided over by its president. It will consist of a technical member from the Centre and a representative of the States. “This is part and parcel of the GST provisions
  • Chapter XVIII of the CGST Act provides for an appeal and review mechanism for dispute resolution under the GST regime. Section 109 of this chapter empowers the Centre to constitute, on the recommendation of the GST Council, an appellate tribunal for hearing appeals against the orders passed by the Appellate Authority. The government, it is learnt, was initially planning an appellate tribunal in each State.
  • However, the idea was discarded in favour of one at the national level following the experience with the various state-level advance ruling authorities, which often gave conflicting judgments. “The disputes they would be looking at would be appeals under GST law wherein the taxpayer is contesting the tax demand put by the tax department, the formation of an appellate authority has come eighteen months after the rollout of the GST regime. The appellate authority is being seen crucial for being 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. The industry has been demanding a centralised appellate authority that could reconcile the contradictory verdicts of different AAARs.
  • The creation of the national Bench would amount to one-time expenditure of Rs.92.5 lakh while the recurring expenditure would be Rs 6.86 crore per annum, a government statement said. The national bench of the GST Appellate Tribunal will expedite resolution of disputes under GST laws.
  • The national bench of the GSTAT is the forum of second appeal in GST laws and the first common forum of dispute resolution between Centre and states, the statement said. The first appeal against the orders of adjudicating authority shall lie before the appellate authority of the states.
  • Being a common forum, GST Appellate Tribunal (national bench) will ensure that there is uniformity in redressal of disputes arising under GST, and therefore, in implementation of GST across the country.
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