GSTAT. HOW LONG TO WAIT?

[Sadanand Bulbule]

Dear all

In the absence of non-constitution of GSTAT, the genuine litigants are forced to approach the State High Courts which are already over flooded with disputes. Is it a herculean task for the Search cum Selection Committee to select/appoint the most eligible members? Despite 8 years of GST regime, when the GSTAT is likely to see the sunlight?

This is the genuine grievance of most people. Walls are ready, but the will is missing. Indecision is the biggest thing that stands in the way of progress. Can the concerned authorities unitedly work for the urgent constitution of GSTAT to spin justice? Just one more final effort makes the tagline-ease of doing business-successful.

[Sadanand Bulbule]

Plz read it as: In the absence of constitution of GSTAT, 

[Ramanathan Seshan]

Dear sir,

This isn't merely a legal or bureaucratic oversight—it's a fundamental breach of justice and the commitment to ease of doing business. Stakeholders across the board are clear in their demand: fast-track the establishment of GSTAT. Continued indecision cannot be allowed to stand in the way of justice. A collective, decisive push from the relevant authorities can finally turn the long-promised business-friendly environment into a lived reality. This concern is far from isolated; it's a widespread sentiment. Indecision remains the greatest hurdle to progress. The time has come for authorities to act with unity and purpose to uphold justice.

Regards,

S Ram

[Sadanand Bulbule]

Dear Ram Sir

I welcome your prompt support in inviting the attention of the GoI to constitute the GSTAT at the earliest possible The wait is over. Enough is enough.

[KASTURI SETHI]

Dear Sir,

GSTAT has not been constituted in Chandigarh zone also.

[YAGAY andSUN]

Dear Sir,

You’ve brought up a highly relevant and urgent concern—one that's echoed by professionals, businesses, and legal experts across India. The non-constitution of the Goods and Services Tax Appellate Tribunal (GSTAT) is not just a delay in administrative action—it’s become a bottleneck in delivering justice and ensuring the ease of doing business promised under the GST regime.

Let’s break it down to reflect the gravity of the issue and suggest a call to action.

🧾 The Unfinished Chapter in GST – Where is GSTAT?

When the GST regime was rolled out in July 2017, it was envisioned as a unified and streamlined tax structure, replacing a complex web of indirect taxes. The architecture of this tax system included a 4-tier dispute resolution mechanism:

1. Adjudicating authority
2. Appellate authority
3. GSTAT (Third Level)
4. High Courts/Supreme Court

While the first two levels exist, the third critical tier—GSTAT—remains missing from this framework, even 8 years later.

⚖️ What This Delay Means for Taxpayers

• Overburdened High Courts: Genuine litigants are left with no choice but to approach High Courts for second appellate relief—courts already burdened with a massive backlog of civil, criminal, and constitutional cases.
• Access to Justice Delayed: The absence of GSTAT results in denial of timely relief, especially for MSMEs and individual taxpayers who can’t afford prolonged legal battles.
• Blocking of Working Capital: Inability to resolve disputes leads to blocking of refunds, increased litigation cost, and hampers cash flows—violating the core principle of GST as a business-friendly reform.
• Loss of Confidence: It casts a shadow on the promise of “Ease of Doing Business”—a key pillar of India’s global competitiveness.

🧩 Why the Delay? – Understanding the Hurdles

• Search-cum-Selection Committee (SCSC) has had issues over eligibility criteria, selection procedures, and structure (e.g., the composition of judicial vs. technical members).
• Legal Challenges: Previous iterations of GSTAT formation were struck down by courts over concerns of executive dominance and violation of judicial independence.
• Lack of Political Will: Despite infrastructure being ready in many states (“walls are ready”), appointments are stalled due to bureaucratic and political indecision.

📢 A Call for Urgent Action

"Indecision is the enemy of progress. The walls are ready, but the will is missing."

The Finance Ministry, GST Council, and the Law Ministry must come together—one final effort—to:

1. Finalize eligibility and structure that upholds constitutional integrity.
2. Accelerate the appointment process via the SCSC.
3. Empower regional benches in key states to decentralize the process.
4. Communicate a timeline to instill confidence among taxpayers and stakeholders.

🔍 What Lies Ahead – When Will GSTAT See the Light of Day?

Recent reports suggest that groundwork has been done and that GSTAT may become operational in 2024-25. Some states like Uttar Pradesh, Gujarat, and Maharashtra have already earmarked buildings and infrastructure. The Finance Bill 2023 amendments addressed several legal hurdles by modifying Section 110 and 113 of the CGST Act.

Still, unless the political and administrative leadership makes this a top priority, the backlog and injustice will continue to mount.

✅ Conclusion: One Final Push Can Make the Tagline True

The Ease of Doing Business isn't a tagline—it's a commitment. A justice system that is accessible, timely, and efficient is essential to uphold this promise.

The constitution of GSTAT is not just about resolving disputes—it’s about restoring faith in the tax system and delivering the dignity of justice to every honest taxpayer.

Let’s not let GSTAT be the unfinished pillar of GST. The system is built. Just spin the wheels.

Regards,

YAGAY & SUN

[Alkesh Jani]

Sir,

It is said that justice delayed is justice denied. Even if the GSTAT is formed today, the numbers of appeal which are pending, GSTAT will be over burdened and a circular or direction will be passed statin speedy disposal. All the stake holders are requested to take up the matter through proper channel so that justice is imparted. Thanks for raising the issue.

Thanks 

[Sadanand Bulbule]

Incidentally, it is happy to note that the Ministry of Finance, GoI has published the GSTAT Rules by virtue of powers vested in it under Section 111 of the CGST Act. Hope the voice is heard. Good going.

[Sadanand Bulbule]

Dear all

It is glad to know that, the Government of India vide its Order No.18/20/2025-EO(SM-II) dated 04/08/2025 has notified the appointment of 33 Technical Members in the cadre of IAS/IRS and 53 Judicial Members to the GSTAT. With this the doors of the GSTAT are likely to be opnened shortly for the litigant. A  golden ray of hope is rising.

In this regard, I urge the State Governments to initiate similar action swiftly in the interest of access to justice. Further delay should not become hindrance in the functionality of GSTAT.

[Sadanand Bulbule]

GSTAT Functionality by December 2025: Announcement Without Groundwork?

The Government of India recently announced that the Goods and Services Tax Appellate Tribunal (GSTAT) would become “functional” by December 2025. However, current on-ground developments raise serious doubts about the feasibility of this timeline.

Across several States, the Search and Selection Committees (SSCs) have yet to finalise the appointment of State Technical Members. In many others, even the basic interaction process with applicants has not commenced. At this sluggish pace, expecting GSTAT to be operational nationwide by the end of 2025 appears increasingly unrealistic.

Before issuing such timelines, it is crucial for the Government to ensure that all prerequisites for the effective functioning of GSTAT—appointments, infrastructure, and administrative processes—are firmly in place. Any delay further burdens taxpayers and litigants, who continue to remain without a dedicated appellate forum, leading to prolonged uncertainty and denied justice. It is time for the authorities to accelerate their efforts, honour their commitments, and restore public confidence in the system. Timely justice is not a privilege—it is a fundamental right.

AI Summary

Delay in constituting GSTAT under Section 109 CGST Act risks justice, despite recent member appointments and assurances A forum discussion highlights prolonged delay in constituting the Goods and Services Tax Appellate Tribunal (GSTAT), forcing litigants to approach overburdened High Courts. The initiator criticizes governmental indecision despite eight years of the GST regime and urges urgent action to uphold ease of doing business. A later update notes a central government order appointing 33 Technical Members and 53 Judicial Members to GSTAT, seen as a positive step, while urging States to act swiftly on their appointments. A further contribution questions the feasibility of the Government's announcement that GSTAT will be functional by December 2025, citing slow State-level processes and warning that continued delay undermines access to timely justice.