GST APPELLATE TRIBUNAL @ 56TH GST COUNCIL MEETING

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. According to one estimate than 15,000 appeals against disputed tax demand are pending as in 2024.

The law envisages constitution of a two tier Tribunal i.e. Principal Bench and State Bench (as amended by Finance Act, 2023 w.e.f. 01.08.2023) 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.

Appellate Tribunal [Section 2(9)]

“Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal constituted under section 109;

Section 2(9) of the CGST Act, 2017, defines ‘Appellate Tribunal ’ to mean Goods and Service Tax Appellate Tribunal as constituted under section 109 of the CGST Act, 2017 which provides for constitution of the Appellate Tribunal on the lines of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

The Central Government has constituted the Principal Bench of GSTAT, on the recommendations of the GST Council constituted the Principal Bench at Delhi videNotification No. S.O.1(E), dated 29.12.2023. The Central Government has videNotification No. S.O. 4073(E), dated 14.09.2023 constituted the State Benches having jurisdiction.

Further, the functioning of Appellate Tribunal has been prescribed in GSTAT (Procedure) Rules, 2025 notified on 24.04.2025. The Goods and Services Tax Appellate Tribunal (GSTAT) shall be constituted by the Government of India under Section 109 of the Central Goods and Services Tax Act, 2017 to hear appeals against the orders passed by the Appellate or Revisional authorities under Section 107 or 108 of the CGST Act, 2017.

Further, Notification No. 18/2024-CT dated 30.09.2024 notified that matters under Section 171(2) in relation to anti-profiteering shall be examined by Principal bench of GSTAT.

GSTAT to be Functional

Though the GSTAT has already started functioning through its Principal Bench at New Delhi and already pronounced few orders under the provisions of anti-profiteering under section 171 of the CGST Act, 2017, it is yet to commence proper functioning for dispute resolution through Principal Bench and State Benches. The Principal Bench of GSTAT has started taking up appeals against orders passed by the National Anti-Profiteering Authority and is also likely to hear matters remanded by various High Courts on anti-profiteering disputes.

At present, the appointment of members- technical and judicial is in process and physical infrastructure is being put in place. While it is expected that GSTAT may start functioning soon for appeals redressal, GST Council has taken certain decisions.

GST Council Recommendations

The GST Council in its 56th Council meeting held on 3rd September, 2025 took up matters concerning GSTAT being made operational.

According to press release issued by Ministry of Finance, it states as under:

“The Goods and Services Tax Appellate Tribunal (GSTAT) will be made operational for accepting appeals before end of September and will commence hearing before end of December this year. The Council also recommended the date of 30.06.2026 for limitation of filing of backlog appeals. The Principal Bench of the GSTAT will also serve as the National Appellate Authority for Advance Ruling. These measures will significantly strengthen the institutional framework of GST by providing a robust mechanism for dispute resolution, ensuring consistency in advance rulings, and offering greater certainty to taxpayers. This will further enhance trust, transparency, and ease of doing business under the GST regime.”

Thus, the 56th GST Council meeting has recommended the following in order to strengthen the institutional framework of GST appellate mechanism by providing a robust mechanism for dispute resolution ensuring consistency in advance rulings, greater tax certainly, ease of doing business and enhance trust & transparency:

• GST Appellate Tribunal (GSTAT) to start accepting filing of appeals by September, 2025.
• GSTAT to commence hearing the appeals by end of December, 2025.
• GSTAT Principal Bench shall act as National Appellate Authority for Advance Rulings, i.e. to decide on conflicting Advance Rulings.
• 30.06.2026 shall be the date for limitation of filing of backlog appeal.

GSTAT as National Appellate Authority for Advance Rulings

GST Council has also decided that the principal bench of GSTAT shall serve or act as National Appellate Authority for Advance Rulings so as to adjudicate and decide on conflicting advance rulings pronounced by different State Advance Ruling Authorities.

Section 101A of CGST Act, 2017, effective from 01.01.2020, provides for constitution of National Appellate Authority for Advance Rulings for hearing of appeals made under section 101B of the Act. Appeal to such Authority can be filed in terms of section 101B of the CGST Act, 2017 where conflicting Advance Rulings are given by the Appellate Authorities of two or more  states or Union Territories. The GST Council has recommended that the Principal Bench of the GSTAT will also serve as the National Appellate Authority for Advance Ruling.

As such, it appears that there may not be constituted any independent or separate Authority for such purposes.

It is expected that necessary Notifications / Orders will be issued in due course to implement the Council’s recommendations.