What is the GST Appellate Tribunal (GSTAT)

Introduction; Flow of Appeals under GST

Since, the inception of GST on 1st July 2017 by the central govt of India, many disputes have arisen related to its implementation, rates, applicability etc, and due to the lack of any specific authority for the purpose of dispute resolution of GST, all the GST related matters were being referred to High courts which caused inconvenience to the taxpayers. In order to solve these issues, the GST Council approved the formation of the Goods and Services Tax Appellate Tribunal also known as GSTAT.

The GST council gets the power to constitute GSTAT and its bench from section 109 of the Central Goods and Services Tax Act 2017. On 01 Jan 2024, the Central Government notified the Constitution of the Principal Bench of the GST Appellate Tribunal at New Delhi. Since we have spoken so much about GSTAT, let us first understand the GST Appellate Tribunal meaning.

What is the GST Appellate Tribunal?

The GST Appellate Tribunal represents a specialised authority that is formed to resolve GST-related disputes at the appellate level. The GSTAT is the second forum of appeal, where orders of the first Appellate Authority and Revisional Authority will be challenged. The GSTAT is meant to expedite the process of dispute resolution under GST. The GST Appellate Tribunal update is available to the taxpayers through GST Appellate Tribunal notification from time to time.

Who Can Appeal to GST Appellate Tribunal?

As we understood in the flow of appeals section the taxpayers need to appeals to the First Appellate Authority then to GSTAT after that to the High Court and Finally to the Supreme Court. But this situation arises when a taxpayer is not happy with the decision given to him by the adjudicating authority. Such taxpayer needs to file his appeal to the First adjudicating authority/ Revisional Authority against that order by filing Form GST APL 01 within 3 months and if he is not satisfied with the decision given by the FAA he may apply to GST Appellate Tribunal within 3 months from the date of appeal by filing Form GST APL 05. In a case where he is not happy with the GSTAT as well, he can apply to the High Court and then finally to the Supreme Court.

Procedure of Filing an Appeal and Application Fees

If a taxpayer goes through the flow of appeals and is not satisfied by the order given to him by the Adjudicating authority as well as the First adjudicating authority/Revisional Authority he may appeal against such decision by filing an Application to Appellate Tribunal under GST within 3 months from the date of appeal along with from GST APL 05 and fees. While filing the appeal, the taxpayer is required to provide grounds of appeal and a form of verification, along with the hard copy of the appeal and a certified copy of the decision before the Appellate Authority within 7 days of filing the appeal electronically. Once the appeal is filed, an acknowledgement indicating the appeal number will be issued in Form GST APL 02.

Applicable Fees:-

The GST Appeal Fees shall be:-

1. The full amount from the original order that he agrees to (including tax, interest, fine, and penalty) 

2. 20% of the amount of tax in dispute.

Constitution of GST Appellate Tribunal

The GST Appellate Tribunal composition consists of

• A National bench Situated in New Delhi headed by the National President with one Technical member from the centre and from the state.

• Regional benches have One Judicial member, One Technical Member(centre), and One Technical Member(state).

• State Benches are headed by the state President.

• Area Benches that will be under State Benches

Note-

1. Every state and Area bench will consist of judicial and Technical Persons as prescribed by the act.

2. The GST Appellate Tribunal Members eligibility and age, Qualification and Appointment etc. will be as per the Act and Recommendations of the council.

GST Appellate Tribunal Members

GST Appellate tribunal Members consist of one Technical Member each from both state and centre in the National Bench, one Judicial Member, and one Technical Member each from both state and centre in case of Regional Benches.

Will All Appeals be Accepted by the Appellate Tribunal?

The GSTAT is not bound by the Act to accept all the appeals made to it. As per the Act, the GST Appellate tribunal can refuse to accept any appeal where the amount of Tax /Input Tax Credit/ Fine/ Fee/ Penalty involved is lower than Rs. 50000.

Decisions Given by GST Appellate Tribunal

The GST Appellate Tribunal has the power to Modify, Confirm, or Nullify the order or decision or refer back the case to the First Appellate Authority or the Revisional Authority. The GSTAT can also refer back the case to the original adjudicating authority directing them to pass a fresh decision after considering any additional evidence. The GSTAT is required to pass the decision within 1 year from the date of filing the appeal.

Communication of Decisions by the Appellate Tribunal

The GST appellate tribunal is required to communicate the order passed to:-

• First Appellate Authority or the Revisional Authority

• The Appellant

• Jurisdictional Commissioner of CGST and SGST.

In case of the Decision being given in the favour of the Appellant, the previously benefited party will also be notified about the new decision, so that he can exercise his option to file a memorandum of cross objection within 45 days of receiving the notice.

Can Appellate Tribunal Amend Its Own Orders?

The GSTAT can amend its decision in order to rectify any apparent mistake that could have been made within a period of 3 months from the date of the order. The mistake to be amended can either be noticed by GSTAT itself or may be brought to its attention by any other party.

However, a reasonable opportunity of being heard has to be given to the concerned party if the amendment of the order results in to Increase in tax liability, a decrease in ITC or a decrease in refund.

Powers of GST Appellate Tribunal

As per the Code of Civil Procedure, 1908, the GST Appellate Tribunal holds the same powers as the court and is deemed a Civil Court for trying a case. It has the power to hear appeals and to pass orders and directions, including orders for the recovery of the amount due. The Tribunal also has the power to impose penalties, and revoke or cancel registrations.

GST Appellate Tribunal Rules, Powers and Duties

The Members of the GSTAT can confirm, modify or nullify or refer back the case to the FAA or to the original adjudicating authority directing them to pass fresh orders. In case of a difference in opinion of the members, the decision will be taken on the basis of majority. However, if the members are equally divided then the case can be referred to the national or state president and the final decision must be taken on the basis of the cumulative majority of the original and the referred bench. It is the duty of the members to pass the decision within one year of filing the appeal.

GST Appellate Tribunal Website

For the taxpayers who are seeking information on the tribunal or for those who are involved in disputes related to GST, The GST Appellate Tribunal website serves as an important resource as it provides information about the Tribunal’s constitution, Jurisdiction, orders and procedure.

Conclusion

GST Appellate tribunal is a specialised authority which has been formed to resolve the disputes related to GST at different levels (National, Regional, State and Area) which was earlier done by the High courts making the process of dispute resolution inconvenient for the taxpayers. It comes with powers similar to a Civil court which makes it a comprehensive solution to all the disputes related to GST.

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