The Ministry of Finance must adopt a time-bound approach and proactively coordinate with state governments for full operationalisation of the Goods and Services Tax Appellate Tribunal (GSTAT) benches across the country, A Parliamentary Standing Committee suggested.
The Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, in its latest Action Taken Report, raised concern for the late appointments of GSTAT Members, especially Technical Members (State), which is restraining the functionality of the tribunal and delaying justice in GST-related disputes.
“The committee desires that the Ministry should expedite all remaining formalities and actively pursue with states to make GSTAT benches functional without further delay,” the report mentioned.
GSTAT for Reducing Litigation
The GSTAT is a crucial institutional procedure that has been made to deliver the quick redressal of disputes under the Goods and Services Tax law and lessen the burden on High Courts. Till now, the Principal Bench in New Delhi has been notified, along with 31 State Benches; many of them have not become fully operational due to the pending appointment of members.
In May 2023, the government appointed Justice (Retd) Sanjaya Kumar Mishra as the first President of GSTAT. Based on suggestions from search-cum-selection committees, Member appointments are to be made, but merely a handful of states-namely Uttar Pradesh, Odisha, Gujarat, Bihar, and Maharashtra/Goa-have submitted suggestions till now.
Delays & Operational Challenges Raised by the Committee
It is a major issue that there is a delay in forming Search-cum-Selection Committees at the state level, the committee cited. It suggested that the Centre strengthen its coordination measures to enhance the process. Also, it cites the significance of regular recruitment to ensure the long-term stability of the tribunal and operational efficiency.
Read Also: GSTAT Gets List of 86 Technical Members for Central and State Benches
“Though temporary operations have started from an interim facility, concerted efforts are needed to develop the tribunal fully and realise its intended benefits,” the committee cited.
Affected GST Ecosystem and Taxpayers
The committee cautioned that the continuous delay in fully operationalising the GSTAT is impacting the GST ecosystem, which results in:
- Prolonged litigation for taxpayers
- Overburdened High Courts
- Denial of timely relief in tax disputes
The panel cited that the Ministry of Finance must act swiftly, with a clear timeline and structured plan, to finish the institutional and administrative steps mandated for GSTAT to operate effectively at the national level.
