FM notifies 31 state benches of GST appellate tribunal

18 Sep 2023 CW Team

In a significant move aimed at expediting the resolution of tax-related disputes, the Finance Ministry has officially notified the establishment of 31 benches of the Goods and Services Tax Appellate Tribunal (GSTAT). These benches will be strategically distributed across all states and Union Territories in India.

The decision to set up state-level benches of GSTAT comes as a respite for businesses grappling with the protracted process of resolving disputes arising from tax authorities' rulings. Currently, taxpayers who are dissatisfied with the decisions made by tax authorities must resort to filing their cases in the respective High Courts, a process notorious for its time-consuming nature.

One of the primary reasons for the delay in resolving these disputes has been the excessive backlog of cases piled up in High Courts. Furthermore, High Courts have lacked specialized benches dedicated to handling cases related to the Goods and Services Tax (GST), further compounding the issue.

According to the official notification, some of the key highlights of this development include:

Gujarat and Union Territories - Dadra and Nagar Haveli, as well as Daman and Diu, will each house two benches of the GST Appellate Tribunal. This allocation aims to ensure a streamlined and efficient process for businesses operating in these regions.

Goa and Maharashtra, two vibrant states with significant economic activities, will together host three benches of the GSTAT. This decision acknowledges the higher volume of GST-related cases originating from these areas.

The establishment of GSTAT benches at the state level is expected to bring about a much-needed transformation in the dispute resolution mechanism, benefiting businesses by providing quicker and more specialized redressal for their grievances related to GST matters.

This move underscores the government's commitment to enhancing the ease of doing business and fostering a more conducive environment for commerce in India. The Finance Ministry's decision to decentralize the resolution of GST disputes is poised to have a positive impact on the business community and promote greater compliance with tax regulations.

As these GSTAT benches become operational, businesses and taxpayers across India can look forward to a more efficient and expedited process for addressing GST-related disputes, ultimately contributing to a healthier business environment.