In a significant development to expedite the resolution of disputed tax demands and enhance the ease of doing business, the Union government has decided to set up Goods and Services Tax Appellate Tribunal (GSTAT) benches in Tripura.
The Finance Ministry, in a recent notification, announced its plans to set up GSTAT benches in seven states across the North Eastern region, including Tripura, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, and Nagaland. These state-level benches are aimed at addressing the rising number of appeals against tax demands raised by Central GST authorities.
Currently, taxpayers aggrieved by tax authority rulings must approach their respective High Courts for dispute resolution. However, this process is often time-consuming and costly due to the backlog of cases in the High Courts, along with the absence of specialized benches for GST cases.
As per data shared by Minister of State for Finance Pankaj Chaudhary, the number of appeals against tax demands has surged to 14,227 by June-end 2023, up from 5,499 in March 2021. This backlog underscores the need for specialized tribunals to handle such cases efficiently.
The establishment of state-level GSTAT benches is expected to significantly expedite the resolution of these cases, providing businesses with a faster and more cost-effective dispute resolution mechanism. It will also relieve the burden on the High Courts, allowing them to focus on other legal matters.
Under this initiative, Gujarat and Union Territories Dadra and Nagar Haveli and Daman and Diu will have two GSTAT benches, while Goa and Maharashtra will have three benches. Karnataka, Rajasthan, and Uttar Pradesh will each have multiple benches, and several other states will have one GSTAT bench.
Chandrajit Banerjee, Director-General of the Confederation of Indian Industry (CII), welcomed this move, highlighting that it will enhance business sentiments and facilitate ease of doing business in the country. He emphasized that the dedicated and specialized GSTATs will provide quicker and more economical resolutions, benefiting businesses and taxpayers.
The establishment of these GSTAT benches across India is seen as a vital step in ensuring fairness, accountability, and the rule of law in tax administration, ultimately promoting a more business-friendly environment.
