**Executive Summary:**
This document addresses a query regarding the establishment and operationalization of the Goods and Services Tax Appellate Tribunal (GSTAT). It details the status of GSTAT benches, budget allocations, reasons for delays in operationalization since the CGST Act of 2017, and interim measures to handle pending GST disputes. A key deadline is March 31, 2025, for availing the amnesty scheme under Section 128A of the CGST Act.
**Key Points / Main Content:**
* **GSTAT Benches:**
* 31 State Benches are located at 45 locations, plus a Principal Bench in New Delhi.
* As of the date of the report, none of the GSTAT benches are fully operational.
* **Budget Allocation:**
* The budget allocated for GSTAT for FY 2025-26 is Rs. 210,04,70,000.
* Funds utilized to date amount to Rs. 3,05,58,376.
* **Reasons for Delay in Operationalization:**
* Legal challenges to the original provisions of sections 109 and 110 of the CGST Act.
* Amendments to rationalize existing Tribunals and uniformity in service conditions, which were also challenged.
* Challenges to the Tribunal Reforms Act 2021.
* Recommendations from the GST Council following a Group of Ministers (GoM) constitution.
* Subsequent amendments to align with the Tribunal Reforms Act.
* **Interim Measures for Handling GST Disputes:**
* Insertion of subsection 165 in the CGST Act with retrospective effect from July 1, 2017, relaxing the time limit for availing input tax credit for FY 2017-18, 2018-19, 2019-20, and 2020-21 claimed through GSTR-3B returns filed up to November 30, 2021.
* Amendment in Section 107 and Section 112 of CGST Act reducing the amount of pre-deposit required for filing appeals under GST.
* Insertion of Section 128A in CGST Act to provide an amnesty scheme with a deadline of March 31, 2025, for waiver of interest/penalty for demands raised under Section 73 for FY 2017-18 to FY 2019-20, provided the full tax amount is paid.
**Impact Analysis:**
* **Taxpayers:**
* *Impact:* Benefit from relaxed time limits for input tax credit claims and reduced pre-deposit amounts for filing appeals. Eligible taxpayers can benefit from the amnesty scheme.
* *Action Required:* Ascertain eligibility and take advantage of the amnesty scheme by paying the full tax amount by March 31, 2025, if applicable. File any pending appeals taking into consideration reduced pre-deposit amounts.
* **Government (Ministry of Finance/Department of Revenue):**
* *Impact:* Resolution of pending GST disputes through interim measures, potential revenue collection through the amnesty scheme, and responsibility for operationalizing GSTAT benches.
* *Action Required:* Continue efforts to operationalize GSTAT benches. Monitor the effectiveness of the interim measures in resolving GST disputes.
* **GST Council:**
* *Impact:* Plays a crucial role in recommending measures related to GST dispute resolution.
* *Action Required:* Continue to assess and recommend further measures for dispute resolution and GSTAT operationalization as needed.
Key Entities Referenced
Goods and Services Tax Appellate Tribunal: Also known as GSTAT, it is an appellate tribunal for GST related disputes.
Central Goods and Services Tax Act, 2017: The primary law governing the Goods and Services Tax (GST) in India.
New Delhi: Location of the Principal Bench of the GSTAT.
GST Council: A constitutional body responsible for making recommendations on GST related issues.
Finance Act 2023: Act that amended the CGST Act, specifically Sections 109 and 110.
Tribunal Reforms Act 2021: Act enacted to rationalize existing Tribunals and bring uniformity in conditions of service.
Revenue Bar Association Vs. Union of India: A legal case (WP No. 21147 of 2018) where the original provisions of section 109 and 110 of the CGST Act were challenged.
PANKAJ CHAUDHARY: Minister of State in the Ministry of Finance.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 158
TO BE ANSWERED ON MONDAY, THE 21ST JULY, 2025/ASHADHA 30, 1947
(SAKA)
ESTABLISHMENT OF GSTAT
158. SHRI MANISH TEWARI:
Will the minister of FINANCE be pleased to state:
(a) the total number of Goods and Services Tax Appellate Tribunal (GSTAT)
benches, including Principal and State Benches, notified for each State and Union
Territory along with their proposed locations;
(b) the total number of fully operational GSTAT benches, including Principal and
State Benches, in the country, State/UT-wise;
(c) the details of the budget allocated, funds released and utilised so far for the
establishment and operationalisation of GSTAT benches, State/UT-wise;
(d) the reasons for the delay in making the GSTAT benches operational despite the
Central Goods and Services Tax Act, 2017 came into effect in 2017; and
(e) the details of interim measures being adopted to handle pending GST disputes
due to the non-availability of an appellate forum under GST?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) There are 31 state benches located at 45 locations and a Principal Bench at New
Delhi. Notified vide S.O. 5063(E) dated 26th November, 2024 (as amended from time
to time).
(b) None
(c) The Budget allocation for the Good and Services Tax Appellate Tribunal (GATAT)
for the FY 2025-26 is Rs. 210,04,70,000/-. The fund utilized till dated is Rs.
3,05,58,376/-.
(d) Delay in making the GSTAT benches operational is due to the following reasons:
1. The original provisions of section 109 and 110 of the CGST Act were
challenged in the Revenue Bar Association Vs. Union of India [WP No.
21147 of 2018]; and in the order dated 20.09.2019, Hon’ble High Court of
Madras held struck down the relevant provisions of the law.
2. Subsequently, Government amended around 30 laws to rationalize
existing Tribunals and bring uniformity in conditions of service like tenure,
retirement age, salary and allowances, method of appointment etc. which
were also challenged and struck down by the Supreme Court.3. On this basis the Tribunal, Appellate Tribunal and other Authorities
(Qualifications, Experience and other Conditions of Service of Members)
Rules, 2020 were issued which were again challenged in the Supreme
Court, and the Court directed certain other changes to be incorporated
after which, Tribunal Reforms Act 2021 was enacted.
4. Thereafter, a Group of Ministers (GoM) was constituted. Based on the
recommendation of the GoM the GST Council in its 49th Meeting dated
18th Feb, 2023 recommended constitution of the Goods and Services Tax
Appellate Tribunal. Accordingly, CGT Act was amended by the Finance Act
2023 wherein Section 109 & 110 of the said Act was amended.
5. Further, certain other amendments in the said sections were carried out on
28th December, 2023 vide the CGST (Second Amendment) Act 2023, to
align the said sections with the Tribunal Reforms Act.
6. Post this, the appointment of Members, Staffs and other requirements for
operationalising GSTAT have commended.
(e) On the recommendations of the GST Council, a new sub-section 16(5) has been
inserted in the CGST Act through the Finance (No. 2) Act, 2024, with retrospective
effect from July 1st, 2017 to relax the time limit prescribed under Section 16(4) of the
CGST Act for availing input tax credit in respect of any invoice or debit note to make
eligible the input tax credit for the financial years 2017-18, 2018-19, 2019-20, and
2020-21 claimed through any GSTR-3B return filed up to November 30, 2021.
Amendment in Section 107 and Section 112 of CGST Act for reducing the
amount of pre-deposit required to be paid for filing of appeals under GST to ease
cash flow and working capital blockage for the taxpayers. The maximum amount for
filing appeal with the appellate authority has been reduced from Rs. 25 crores CGST
and Rs. 25 crores SGST to Rs. 20 crores CGST and Rs. 20 crores SGST. Further,
the amount of pre-deposit for filing appeal with the Appellate Tribunal has been
reduced from 20% with a maximum amount of Rs. 50 crores CGST and Rs. 50
crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores
SGST.
Insertion of Section 128A in CGST Act has been carried out to provide for an
amnesty scheme, which provide for waiver of interest or penalty or both relating to
demands raised under Section 73, for FY 2017-18 to FY 2019-20 in cases where the
taxpayer pays the full amount of tax demanded in the notice upto 31.03.2025.
****