Finance Minister Nirmala Sitharaman speaks in the Lok Sabha throughout the Winter session of Parliament, in New Delhi, on December 13, 2023.
| Photo Credit: PTI
Setting the stage to clear the ultimate hurdle holding up the formation of the GST Appellate Tribunals, Finance Minister Nirmala Sitharaman on December 13 launched amendments to the Central Goods and Services Tax Act of 2017 in the Lok Sabha to align its provisions with the Tribunal Reforms Act of 2021.
The proposed adjustments which relate to the eligibility standards for members and the President of the much-awaited tribunals, as soon as authorised by Parliament, will facilitate the initiation of “the administrative process for operationalisation of the Goods and Services Tax Appellate Tribunals at the earliest”, the Minister said in the objects and causes for the Central GST (Second Amendment) Bill, 2023.
The GST regime, launched in July 2017, had provisions for setting up the Appellate tribunals as the second appellate authority for listening to appeals towards the orders handed by the Appellate Authority below the Central and State GST legal guidelines.
“Non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts,” Ms. Sitharaman mentioned. As of October 31, the variety of pending appeals below central GST legal guidelines had risen to practically 15,000, reflecting a 25% rise over the pending instances at the finish of 2022-23.
While the Central GST legislation was amended earlier in July to allow the creation of the Central GST appellate tribunals, throughout the technique of operationalisation, it was noticed that sure provisions weren’t aligned with the Tribunal Reforms legislation.
In early October, the GST Council chaired by Ms. Sitharaman had beneficial contemporary amendments in the situations of appointment of President and Member of the proposed GST Appellate Tribunals with regards to eligibility and age standards.
On December 4, responding to MPs’ queries about the standing of the appellate tribunals, Minister of State for Finance Pankaj Chaudhary had mentioned State benches of the Tribunal have been constituted by means of a notification in September.
Terming the improvement as a optimistic signal which will lead to faster formation of the tribunals, Sanjay Chhabria, director (oblique tax) at Nexdigm, mentioned the key change being proposed is to widen the eligibility standards for members, the place even legal professionals with over 10 years of expertise in oblique tax litigation can now be a Tribunal member.
