Streamline dispute resolution with a 4-member GST appellate tribunal in states soon 2023
According to a government official, each state should establish a four-member appeal tribunal to streamline and expedite the Goods and Services Tax dispute resolution process (GST). Two technical members (one from the center and one from each state) and two judicial members would comprise each state appellate tribunal.
The appeals will be considered by a two-person panel with one technical and one judicial member. According to the proposal, each state appellate court would have two division benches and will thus be able to handle more cases.
In addition, a national appeals tribunal comprising one judicial member and one technical member would be formed in Delhi.
Under the GST regime, the national appellate panel will largely address disputes between the department and the assessee about the “place of supply.” The source stated that it will not entertain cases containing contradictory conclusions by state appellate tribunals.
“States have responded to the makeup of the appellate tribunal. Official: “There will be more discussion between Central and state tax authorities, and then Parliament will be suggested amendments to the GST legislation.”
According to the official, there are continuing discussions with the states over the formation of a selection committee to appoint judges to state benches. A panel of active or retired High Court and District Court judges will choose the members of the judiciary.
The amendments would be incorporated into the Finance Bill of 2023 for ratification by the legislature. State legislation would subsequently be modified.
The entire process of creating benches in each state and a national appeals court would take around 7-8 months, according to the source.
The latest step followed the 49th meeting of the GST Council held last month, during which the report of a delegation of state ministers on GST Appellate Tribunals was endorsed with certain modifications.