GST APPELLATE TRIBUNAL - AN UPDATE

The Appellate Tribunal is the second level of appeal, where appeals can be filed against the orders-in-appeal passed by the Appellate Authority or order in revision passed by revisional authority, by any person aggrieved by such an order-in-appeal/Order in revision.

The law envisages constitution of a two tier Tribunal i.e. Principal Bench and State Bench  Jurisdiction of the two constituents of the GST Tribunal is also defined. If place of supply is one of the issues in dispute, then the National Bench/Regional benches (Principal Bench and State Bench as amended by Finance Act, 2023) of the Tribunal will have jurisdiction to hear the appeal. If the dispute relates to issues other than the place of supply, then the State Benches will have the jurisdiction to hear the appeal. An appeal from the decision of the Principal Bench will lie directly to the Supreme Court and an appeal from the decision of the State Bench will lie to the jurisdictional High Court on substantial questions of law.

The Tribunal after hearing both sides may pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the Appellate Authority or to the revisional authority, or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary. For reasons of natural justice (reasonable opportunity) it is also provided that the Tribunal may, if sufficient cause is shown, grant up to 3 adjournments to either side.

The entire process of dispute resolution via appeals to GST Appellate Tribunal (GSTAT) shall be digitized. This is expected to result in streamlining of appeals by enabling electronic filing of appeals against the orders of the first appellate authority. This would reduce paper work as well as administrative work significantly, besides reducing turn-around time in the overall litigation process and leading to faster disposal of appeals / applications and quick liquidation of demand (recovery of revenue stuck-up in litigation).

On the other hand, tax payers will benefit from ease of filing and tracking of appeals, accessing of past orders and status, ensuring transparency and efficiency in the entire process. All stakeholders can have easy and quick access to precedents for fast and more informed decision making bringing in better equity and justice.

Appeal to Appellate Tribunal – Provisions at a Glance

1. Who can file appeal – Any person aggrieved by order passed in first appeal; authorised officer of the department on direction of Commissioner
2. Order appealed against – Order passed by appellate authority
3. Time limit to file appeal – Within 3 months of communication of order; delay filing upto 3 months allowed on show of sufficient cause; 6 months for departmental appeals
4. Pre-deposit for filing of appeal – 20% of amount in dispute subject to a maximum of Rs. 50 crores (10% subject to a maximum of 40 crores w.e.f.. 01.11.2024).

If only penalty is appealed, 10% of the penalty to be pre-deposited (w.e.f. 01.04.2025)

1. Number of adjournments allowed in hearing – Upto 3 adjournments can be granted for hearing the appeal
2. Time limit to decide appeal – Appeal may be decided as far as possible within a period of one year from the date of filing.
3. The revenue can also file an appeal within six months of the review order.
4. Tribunal can refuse to admit appeal where the amount involved does not exceed Rs. 50,000/-
5. The respondent is required to file cross objections within 45 days of the receipt of notice of filing of appeal.
6. The prescribed fees for filing appeal shall be Rs. 1,000/- for every Rs. 1,00,000/- involved subject to maximum of Rs. 25,000/-
7. Tribunal shall grant personal hearing and follow principles of natural justice.
8. Additional grounds and evidence shall be allowed only in exceptional circumstances
9. The orders passed by Tribunal shall be final and binding except when an appeal is filed before High Court and Supreme Courts.
10. Appeals for orders under section 171 (Anti profiteering) to be dealt with by Principal bench of Appellate Tribunal [as amended by Finance (No. 2) Act, 2024 w.e.f. 01.10.2024].

Recommendations of GST Council so far

The GST Council in its 49th meeting held on 11.02.2023 approved and adopted the report of group of ministers (GoM) on GST Appellate Tribunal. It was decided that the Chairperson of the council shall finalize the same.

GST Council in its 50th meeting held on 11.07.2023 decided to constitute the GST Appellate Tribunal w.e.f. 01.08.2023. According to press release, the council recommended the rules, viz, the Goods and Services Tax Appellate Tribunal (Appointment and conditions of Service of President and Members) Rules, 2023. Accordingly, the Council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth constitution and functioning of GST Appellate Tribunal. The Council also recommended that provisions of Finance Act, 2023 pertaining to GST Appellate Tribunal may be notified by the Centre with effect from 01.08.2023, so that the same can be brought into operation at the earliest. Further the council has recommended the Chief Secretary of Maharashtra to be nominated as one of the members of the Search cum selection committee as per Section 110(4)(b)(iii) of CGST Act 2017. Regarding the number of State Benches, it was decided to start them in a phase wise manner.

The GST Council in its 52nd meeting held on 07.10.2023 approved alignment of provisions of the CGST Act, 2017 with the provisions of the Tribunal Reforms Act, 2021 in respect of Appointment of President and Member of the proposed GST Appellate Tribunals. The Council recommended amendments in section 110 of the CGST Act, 2017 to provide that:

• an advocate for ten years with substantial experience in litigation under indirect tax laws in the Appellate Tribunal, Central Excise and Service Tax Tribunal, State VAT Tribunals, by whatever name called, High Court or Supreme Court to be eligible for the appointment as judicial member;
• the minimum age for eligibility for appointment as President and Member to be 50 years;
• President and Members shall have tenure up to a maximum age of 70 years and 67 years respectively.

The GST Council in its 53rd meeting held on 22.06.2024 recommended for:

1. Reduction in monetary limits prescribed for filing appeals by Department to reduce litigation before GSTAT/High Court/Supreme Court.
2. Reduction in maximum amount of pre-deposit for filing appeals before First Appellate Authority and GSTAT.
3. Time for filing appeals before GSTAT (Section 112)
4. Adjustment of amount towards pre-deposit from amount paid through form GST DRC-03.

Constitution of GST Appellate Tribunal (GSTAT) - Road map so far

As on 15th June, 2025, following events in the destination to functioning of GSTAT can be traced:

Appointment of President for GSTAT

Union Government has appointed President of the new GST Appellate Tribunal (GSTAT) being Constituted under the GST law vide F.No. 18/10/2024-EO (SM-II) dated 01.05.2024 issued by Ministry of Personnel, Public Grievance & Pensions, Government of India

• Justice (Retd) Sanjaya Kumar Mishra, Former Chief Justice of Jharkhand High Court, has been appointed to the post of President in GSTAT for a period of 4 years w.e.f. dated of assumption of charge of the post or till he attains the age of 70, whatever is earlier.
• Union Finance Minister has administered the oath of integrity & secrecy to Justice Mishra on 06.05.2024.
• The appointment marks the beginning of operationalisation of GSTAT, a crucial body to resolve GST related disputes and to hear appeals.
• GSTAT shall consist of Principal bench (to be located at New Delhi) and 31 state benches at various locations across the country.

Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025

Central Government has notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 (in short, GSTAT Procedure Rules) vide Gazette Notification No. GSR 256(E) dated 24.04.2025. These shall come into force w.e.f. 24.04.2025, i.e., date of publication in Official Gazette.

Address of GSTAT

Goods & Services Tax Appellate Tribunal (GSTAT)

Department of Revenue, Ministry of Finance,

6th Floor, Tower-1, Jeevan Bharti Building,

Connaught Place, New Delhi - 110001

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