Centre asks state governments to approve changes in GST laws by October

The Centre has asked state governments to approve changes to their respective Goods and Services Tax laws by October to enable the setting up of an appellate tribunal with its principal bench in Delhi.

The tribunal will have benches across states by December. Parliament had given its nod to changes in the GST law in March.

“We are trying to get amendments approved by all state legislative assemblies by October so that we can start constituting tribunal benches,” a senior official told FE.

The tribunal will help quickly resolve disputes relating to the key indirect tax and boost tax collections, addressing concerns of both the industry and tax authorities.

The delay in the establishment of the appellate tribunal has led to the accumulation of unresolved legal issues under the GST regime after it was rolled out in July 2017.

 

Currently, taxpayers are filing writ petitions in high courts in the absence of an appellate tribunal. So, the establishment of an appellate tribunal will lower burden on high courts and the Supreme Court, analysts said.

A four-member search and selection committee headed by either the chief justice of the Supreme Court or his representative judge from the SC will be tasked with the appointment of members (except for technical members from states) to the benches.

The panel will include the president of the appellate tribunal (one of the judicial members of the principal bench), a Union government secretary and a state chief secretary nominated by the council. The chairperson will have a casting vote.

According to the contours of the GST Appellate Tribunal (GSTAT) approved by Parliament via amendments to the Central Goods and Services Tax Act, the principal bench and each state bench will have two judicial and two technical members, with equal representation from the Centre and states in case of technical members.

Many benches can be set up in each state, subject to the approval of the GST Council. The cases involving the issue of the place of supply will be heard by the principal bench only.

A single member of a bench will hear appeals below Rs 5 million related to tax or input tax credit or fee or penalty determined in an order of any appellate authority or revisional authority if no question of law is involved.

In all other cases, matters will be heard together by a judicial member and one technical member.

Source::: FINANCIAL EXPRESS,  dated 20/06/2023.