LI Network
Published on: 15 September 2023 at 12:22 IST
The Finance Ministry has taken a decisive step towards enhancing the efficiency of tax dispute resolution by notifying the establishment of 31 benches of the GST Appellate Tribunal (GSTAT) across all states and Union Territories in India.
This crucial move is expected to greatly benefit businesses by expediting the resolution of disputes related to Goods and Services Tax (GST). Currently, taxpayers dissatisfied with rulings from tax authorities are required to approach the respective High Courts for resolution, leading to protracted legal processes. The backlog of cases in High Courts further exacerbates the delay in addressing GST-related disputes, which often remain unresolved for extended periods.
The establishment of state-level benches of GSTAT is set to revolutionize this landscape. Gujarat and the Union Territories of Dadra and Nagar Haveli and Daman and Diu will each have two GSTAT benches, while Goa and Maharashtra together will boast three benches. Karnataka and Rajasthan will both accommodate two benches, and Uttar Pradesh will host three.
West Bengal, Sikkim, and the Andaman and Nicobar Islands, as well as Tamil Nadu and Puducherry, will collectively see two GSTAT benches each. Kerala and Lakshadweep will have one bench, while the seven North Eastern states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura—will share one GSTAT bench. All other states will also have one bench of the GSTAT.
This development has been widely welcomed by experts in the field. Rajat Mohan, Senior Partner at AMRG & Associates, emphasized the essential role played by GST tribunals in resolving tax-related matters impartially and efficiently. These tribunals are crucial in ensuring fairness, accountability, and adherence to the rule of law in tax administration.
In its initial phase, the government has notified the establishment of 31 GSTAT tribunals, which will be strategically located in major cities across the country. The next phase will involve identifying suitable locations for these tribunals, appointing qualified members, and providing the necessary infrastructure and resources.