Govt. notifies 31 Benches of GST Appellate Tribunal (GSTAT)

Subject: Economy

Section: Fiscal Policy

In News: Govt. notifies 31 Benches of GST Appellate Tribunal

Key Points:

The Finance Ministry notifies the constitution of 31 Appellate Tribunals across 28 States and eight Union Territories for the Goods and Services Tax (GST).
This will help resolve a growing number of taxpayer disputes with the Revenue Department.
Establishment of these tribunals was envisaged at the time of the implementation of the GST regime from July 1, 2017 but got a final clearance from the GST Council in July 2023.
It was a much-awaited move for industry players, who had been approaching the High Courts and Supreme Court during the past six years.
The first set of tribunals will become operational sometime between this November and January 2024.
To start with, Uttar Pradesh will have the highest number of benches of the GST tribunals, with three benches proposed to be set up across Lucknow, Varanasi, Ghaziabad, Agra, and Prayagraj.
Karnataka and Rajasthan will have two benches each, while Maharashtra and Goa together will have three benches to take up appeals.

Why the move is significant?

Constitution of GST Appellate Tribunals (GSTATs) will expedite the process of adjudication and provide tax certainty especially in recurring litigative issues.
Ensuring speedier and economic resolution of cases by dedicated and specialized GSTATs will help in bolstering business sentiments and ease of doing business in the country.
Where the taxpayers feel that there has been a burden of high rate of pre-deposit, the decisions by the tribunal will give some relief.