Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman administered the oath of integrity and secrecy to Justice (Retd.) Sanjaya Kumar Mishra as the President of the GST Appellate Tribunal (GSTAT), in New Delhi, today. Justice (Retd.) Mishra’s appointment marks the beginning of the operationalisation of the GSTAT, a crucial body for resolving GST-related disputes.
The GSTAT is the Appellate Authority established under the Central Goods and Services Tax Act, 2017, to hear various appeals under the said Act and the respective State/Union Territories GST Acts against the orders of the first appellate authority. It consists of a Principal Bench and various State Benches.
As per the approval of the GST Council, the Government has notified the Principal Bench, to be located at New Delhi, and 31 State Benches at various locations across the country. Process for appointment of Judicial Members and Technical Members is already in progress.
The Tribunal will ensure swift, fair, judicious and effective resolution to GST disputes, besides significantly reducing the burden on higher courts. The establishment of the GSTAT would further enhance the effectiveness of the GST system in India and foster a more transparent and efficient tax environment in the country.
GSTAT’s first President, Justice (Retd.) Mishra was a former Chief Justice of the Jharkhand High Court and was selected by a Search-cum-Selection Committee headed by the Hon’ble Chief Justice of India.
However, the appointment of Justice Mishra raises questions about the ongoing High Court litigation on GST-related issues, as the Tribunal is not yet operational. This has led some taxpayers to resort to filing writ petitions with their respective high courts.
Abhishek A. Rastogi, founder of Rastogi Chambers, explained that taxpayers approaching the High Court due to the absence of an appellate authority may be directed to file fresh cases before the GSTAT once it is established.
In a decision made by the Bombay High Court in 2023, it was stated that individuals could appeal to the Tribunal within three months of receiving the order they wish to appeal against or within three months of the Tribunal’s President taking office, whichever occurs later.
The absence of the Tribunal also raises questions about the legal precedents it will rely upon once operational, as specific jurisprudence related to GST matters is currently unavailable. During this period, legal frameworks for dispute resolution may primarily rely on past judgements and laws pertaining to service tax and excise.
Parag Mehta, partner at NA Shah Associates LLP, highlighted that relevant judgements passed by high courts on GST-related matters will also influence the decision-making process of the Tribunal.
Once operational, the GSTAT will allow both taxpayers and the department to file online appeals to pursue further litigation. However, it is expected to take three to six months for the appellate tribunal to become fully operational.