The Centre may be looking to announce the formation of the Goods and Service Tax Appellate Tribunal (GSTAT) in the Union budget next week. The GSTAT will be the tribunal where taxpayers can bring their litigations. Right now they are forced to go to the country's already burdened High Courts.

“The government has been receiving complaints that GST officials often pressurise taxpayers to pay the assessed tax amounts, even if assessees contend that such assessments are arbitrary and erroneous. Unable to file a writ petition in the high court, which is cumbersome, many taxpayers pay GST dues under protest,” a person aware of the matter told Hindustan Times.

While setting up a tribunal for indirect taxes would be something under the purview of the GST council, the Union Cabinet had given its approval to set up the tribunal for such matters in 2019.

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“The National Bench of the Appellate Tribunal shall be situated at New Delhi. GSTAT shall be presided over by its president and shall consist of one technical member (Centre) and one technical member (state),” read a statement by the Cabinet Secretariat after the Cabinet had approved the setting up of GSTAT in 2019.

However, technical and logistical issues have prevented the creation of the tribunal.

Setting up a tribunal is already well within the provisions of the GST Act. Section 109 of the CGST Act "empowers the Centre to constitute, on the recommendation of Council, by notification, with effect from such date as may be specified therein, an Appellate Tribunal".

While the law has the provision for setting up the national bench, state bench, and area benches for tribunals, the proposed GSTAT is expected to be a national-level bench.

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First Published:Jan 29, 2022 2:50 PM IST