GST APPELLATE TRIBUNAL - ECONOMY
News:
GST Council reaches consensus on setting up of a dedicated Appellate Tribunal
What's in the news?
● The
Goods and Service Tax (GST) Council has reached a broad consensus on the
constitution of the long-awaited GST Appellate Tribunal meant to resolve the
rising number of disputes under the 68-month-old indirect tax regime clogging
High Courts and other judicial institutions.
GST Appellate Tribunal (GSTAT):
● The
GST Appellate Tribunal is a quasi-judicial body proposed to be established to
resolve disputes related to the Goods and Services Tax (GST) in India.
Legal back up:
● Section
109 of Chapter XVIII Chapter of CGST Act
empowers the Central Government to constitute an Appellate Tribunal known as
the Goods and Services Tax Appellate Tribunal for hearing on the recommendation
of Council.
Functions:
● It
will function as an independent body
to hear appeals against orders passed by the GST authorities or the Appellate
Authority.
Location:
● The
tribunal will be composed of a national
bench and various regional benches, headed by a chairperson appointed by
the Central Government.
○ The
National Bench of the Goods and Services Tax Appellate Tribunal will be
situated in New Delhi.
○ The
National Bench of GSTAT would consist of the President and comprise one technical member from the center and one
technical member from the state.
Jurisdiction:
● The
jurisdiction of the Appellate Tribunal extends to all cases where an appeal has been filed against an order,
decision, or direction of a lower authority under the GST laws.
● The
Tribunal has the power to hear and resolve disputes related to the assessment
of taxes, determination of liability, imposition of penalties, and other
matters related to the implementation and interpretation of the GST laws.
Powers:
● As
per the Code of Civil Procedure, 1908,
the GST Appellate Tribunal holds the same powers as the court and is deemed Civil Court for trying a case.
● The
Appellate Tribunal has been granted the powers to hear appeals and to pass
orders and directions, including those for the recovery of amounts due, for the
enforcement of its orders, and for the rectification of mistakes.
● The
Tribunal also has the power to impose
penalties, revoke or cancel registrations, and take such other measures as
may be necessary to ensure compliance with the GST laws.
Appellate Structure:
● Under
GST, if a person is not satisfied with the decision passed by any lower court,
an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):
○ Adjudicating
Authority
○ Appellate
Authority
○ Appellate
Tribunal
○ High
Court
○ Supreme
Court.
Time Period for Appeal:
● The
application will be valid only if it is raised within a time span of 3 months from the date of issue.
Exceptions:
● The
GST Appellate Tribunal can choose to refuse an appeal if the involved amount
(of tax, ITC, fine, fee or penalty) is lower
than Rs. 50,000.
● The
GST Appellate Tribunal can adjourn the hearing of the appeal for a maximum 3
times. The reasons for adjournment must be recorded in writing.
Significance:
● The
proposed tribunal is expected to help expedite the resolution of disputes
related to GST and reduce the burden on the judiciary.