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Indian Judiciary Gets a Break from GST Litigation Woes

Abhishek Kumar Singh by Abhishek Kumar Singh
21 February 2023
in Economy
Indian Judiciary Gets a Break from GST Litigation Woes
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The Indian Judiciary is already saddled with millions of unresolved cases. For the last half decade, GST cases have turned out to be another burden on them. The GST council has a cure for these woes.

GoM’s recommendations accepted

Finance Minister Nirmala Sitharaman told the country that the report of the Group of Ministers (GoM) has been adopted by the GST Council. Group headed by Dushyant Chautala, Haryana’s Deputy CM,  was formed to pass on its recommendation on the establishment of GST Appellate Tribunals(GSTATs).

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The GST Act, passed in 2017 itself mandates the establishment of GST tribunals. Due to some unknown official reasons, 5 years were not enough for the establishment of Tribunals. Possible decipherable reasons for the delay include lack of manpower, infrastructure facility and differences between states and centre on the selection of members. Whatever be the reason for delay, it resulted in confusions regarding minute aspects of the GST going to High Courts and Supreme Court. Writ petitions are also being used.

Composition of the tribunal

To eliminate this scourge, a two tier structure will be implemented. Apart from one National level Principal Bench, states will also have their own benches and boards. In line with the varying demands of industrialisation, States have a certain degree of autonomy in deciding the number of benches or boards. They just have to get final approval from the GST Council regarding it.

There would be equal participation from the Center and States on the major bench and state boards. Each would each have two technical and two judicial members. However, none of the four members would be present for each case’s hearing, which would be decided based on the amount or threshold of dues at issue.

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For the cases involving disputes upto Rs 50 lakhs, only one member will decide them. For cases crossing that limit, one technical and one judicial member will collaborate to sort out.

Need of the hour

Some of the aforementioned decisions have been reached after minor tinkering in GoM’s recommendations. The changes are being circulated to the states and the final draft regarding the modalities and procedures will be finalised before March 1. The changes are expected to come to effect by the end of this year.

Industry experts interacting with the media have commended the change. It is a win-win situation for the public, judiciary and industry. The rumour mongering around confusions prevailing in the GST regime will also come to halt.

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Tags: Dushyant ChautalaEconomygstGST Litigation WoesHaryana’s Deputy CMIndian Judiciary
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