Govt Launches National GST Appellate Tribunal To Start Hearing Cases From Dec

(MENAFN- Live Mint) New Delhi: India's businesses and goods and services tax (GST) authorities at the central and state levels now have the long-awaited unified forum to resolve tax disputes. Finance minister Nirmala Sitharaman on Wednesday launched the Goods and Services Tax Appellate Tribunal (GSTAT), which will start hearing cases from December.

This marks a major milestone in the evolution of the indirect tax regime and its dispute resolution architecture. The tribunal will take up appeals arising from cases that are not resolved within the central and state tax authorities' administrative ecosystem, and currently land in various high courts.

Sitharaman said the tribunal aims to reduce legal friction, bring greater simplicity, proactively address delays in litigation so that the cash flows of businesses function smoothly and micro, small and medium enterprises (MSMEs) and exporters can invest with confidence.

The government has appointed Justice Sanjaya Kumar Mishra as the president of the tribunal.

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The GST appellate tribunal will help reduce problems arising out of conflicting rulings by the advance ruling authorities in different states.“From April 2026, the principal bench of GSTAT will act as the National Appellate Authority for Advanced Rulings, providing businesses with clarity and ensuring consistency across states. This makes GSTAT not just a tribunal, it makes it a one-stop comprehensive forum for GST disputes, both before initiation and after initiation of the proceedings,” the minister said.

Challenge in tax administration

Conflicting rulings by authority for advance rulings (AARs) in different states, which businesses approach for clarity on tax matters before executing a transaction, had proved to be challenge in tax administration.

“Earlier, states often differed in interpreting product classification or even the definition. We have had very many complications because of that and the GST Council would labour on what guidelines or clarifications to be issued. This has repeatedly been an agenda item in every GST Council meeting,” Sitharaman said.

In cases of conflicting rulings, the GST Council had to frequently issue clarifications.“With the GSTAT coming and the Centre and states on board, we open a new era of predictable, specialised jurisprudence,” the minister said.

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“This is cooperative federalism in action,” the minister said likening the tribunal to the spine of the indirect tax system.

The indirect tax system is evolving around the principle of simplicity, the minister said, adding that citizens remain at the core of government's policy-making, as articulated by Prime Minister Narendra Modi's slogan 'nagrik devo bhava' or 'citizen is God.'

In the spirit of this same principle, GSTAT should focus on jargon-free decisions in plain language, simplified formats and checklists, digital by default filings, virtual hearings and time standards for listing, hearing and for pronouncement, she said.

The minister described the launch of the tribunal as a powerful reminder of policy-makers' determination to continue improving, reforming and adapting the tax system for the future. Reform is a continuous process and GST must evolve and is evolving around the principle of simplicity and ease of living.

Justice Mishra, who was present on the occasion, said the tribunal will play a pivotal role in clearing the significant backlog of appeals under GST, while also laying down jurisprudence for future disputes. The cooperation of central and state governments has been instrumental in the establishment of the tribunal, he added.

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