The Central Government has taken a significant step in improving tax dispute resolution by establishing the Goods & Services Tax Appellate Tribunal (GSTAT). Retired Justice Sanjaya Kumar Mishra has been appointed as the President of GSTAT, which will feature 31 benches in major cities across India. This move aims to provide businesses with a timely and efficient mechanism to resolve GST-related disputes.
The Appointment Committee of the Cabinet, following the recommendation of the Search-cum-Selection Committee (SCSC), approved the appointment of Justice (Retd.) Sanjaya Kumar Mishra, who previously served as the Chief Justice of the High Court of Jharkhand. He will serve as President of GSTAT for a term of four years, or until he reaches the age of 70, with a monthly salary of ₹2.50 lakh.
To further strengthen the tribunal’s framework, the Finance Ministry has announced vacancies for 63 judicial members and 33 technical members, representing both the Centre and the States. The GSTAT will include a Principal Bench in Delhi and additional benches across various states. Notably, Uttar Pradesh will host three benches, the most of any state, while Gujarat, Karnataka, Rajasthan, Tamil Nadu, and Maharashtra will each have two benches. The Principal Bench will handle inter-state disputes, while state benches will address other issues, including GST rates. Appeals can be made from these benches to the High Courts and the Supreme Court.
GSTAT is designed to be a specialized body focused on GST disputes, ensuring that tax matters are resolved swiftly and impartially. Despite facing several legal and administrative hurdles, the establishment of GSTAT is a crucial development. These tribunals will provide an expert forum for resolving tax disputes, thereby promoting fairness and the rule of law in tax administration. The introduction of 31 benches nationwide is expected to alleviate the burden on High Courts and expedite the resolution of tax disputes.
Businesses have long felt the absence of dedicated GST tribunals, often resulting in prolonged and costly litigation processes in High Courts. The new GSTAT is anticipated to streamline dispute resolution, enhancing business sentiment and improving the ease of doing business in India. The number of appeals against orders from first Appellate Authorities has surged, doubling from 5,499 in 2020-21 to 11,899 in 2022-23, highlighting the urgent need for an efficient dispute resolution mechanism.
Chandrajeet Banerjee, Director General of the Confederation of Indian Industry (CII), remarked that the establishment of GSTAT will significantly benefit businesses. “By ensuring speedier and economical resolution of cases through specialized GSTATs, this initiative will bolster business confidence and contribute to a more favorable business environment in the country,” Banerjee said.
The creation of the GST Appellate Tribunal, with Justice Sanjaya Kumar Mishra at its helm, marks a pivotal advancement in India’s tax administration system, promising a more efficient and just resolution of GST disputes.