The next GST Council 28th meeting is going to take place on July 21. A proposal is about to come in front of GST council considering the establishment of the National Appellate Tribunal in Delhi along with 3 regional benches, tax departments, and judicial members to think about appeals filed against order formulated by the appellate authority which is set up by different states under an indirect tax regime.
The proposal mentions to set up three benches under the national appellate tribunal in Chennai, Mumbai, and Kolkata.
The proposal is put with the objective to deal with the issues encountered by industry because of contradictory orders issued by AAR (Authority for Advance Ruling) in multiple states. It has also analyzed that a majority of the issued orders of AAR are taking a side of the revenue department because tax officials are part of these authorities.
The industry demands a president as an independent judicial member who regulates the working of the GST appellate tribunal of India to be established for solving contention placed between taxpayers and revenue.
It is necessary that the state and Central governments should modify the GST law if the GST council accepts the proposal in the next meeting going to set up on July 21.
Under the newly implemented indirect tax regime, an aggrieved party is able to lodge an appeal against AAR’s order before completing 30 days of the order, later, however, it can be enlarged to a month.
According to the law, all states are needed to establish minimum one AAR in order to handle advance ruling over Goods and Service Tax levy and further, one appellate authority as well to hear appeals filed against the Authority for Advance Ruling (AAR).
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In March, AAR bench of New Delhi has announced that the duty-free shops of airports are also eligible to deduct GST levied from airport passengers. Although, previously these shops were exempted from Central Sales Tax and service tax.
Moreover, the solar industry as well placed in a dubious situation while the Maharashtra AAR announced that solar installation work would attract 18% GST rate, but the Karnataka AAR issued an order of 5% GST rate on the same subject.
