Technical officials from the Indian Administrative Service (IAS) and Indian Revenue Service (IRS) are among the 33 selected to serve on the GST Appellate Tribunal.

Technical officials from the Indian Administrative Service (IAS) and Indian Revenue Service (IRS) are among the 33 selected to serve on the GST Appellate Tribunal.

The GST Appellate Tribunal (GSTAT), established under the Central Goods and Services Tax Act, 2017, has seen key appointments made by the central government, including judicial and technical members for the Principal Bench in New Delhi and 31 State Benches. However, the tribunal is not yet fully operational across India due to delays in state-level nominations for Technical Members for the State Benches.

Justice (Retd.) Sanjaya Kumar Mishra was appointed President of the Principal Bench in May 2024, and recently, Mayank Kumar Jain, a retired High Court judge, along with retired IAS officer A Venu Prasad and retired IRS officer Anil Kumar Gupta, have been appointed as judicial and technical members for the Principal Bench.

The Standing Committee on Finance has urged the government to expedite the nomination process so that all benches can function without delays and provide timely relief to taxpayers. The committee has reported that the GSTAT is not operational pan-India, as only a few states have sent nominations for Technical Members for the State Benches.

This delay in state-level nominations is hindering the full functionality of GSTAT, causing prolonged litigation and burdening higher courts. The GSTAT, which aims to reduce the burden on higher courts, enhance the effectiveness of the GST system, and provide for a more efficient tax environment in India, is persistently experiencing delays in its full functionality.

The GSTAT consists of a Principal Bench and various State Benches. The Principal Bench sits at New Delhi and has a total of 33 members, including IAS and IRS officers. The remaining 31 members of GSTAT will be posted in the State benches, and the technical members will draw a monthly salary of Rs 2.25 lakh.

The government has notified 31 State Benches and appointed 31 technical and 52 judicial members for these benches, awaiting state nominations to become fully functional. All 31 members of GSTAT have been appointed for a period of four years or until they reach the age of 67 years, whichever is earlier.

The GSTAT was set up to hear appeals under the GST Acts and resolve disputes related to GST swiftly. It was established to hear appeals under this as well as the corresponding State and Union Territories GST Acts. The tribunal's persistently delayed full functionality adversely impacts the larger GST ecosystem, resulting in prolonged litigation, overburdening of High Courts, and denial of timely relief to taxpayers.

The centre appointed Justice (Retd.) Sanjaya Kumar Mishra as the President of the GSTAT last year. He was selected by a Search-cum-Selection Committee headed by the Chief Justice of India. The government is under pressure to expedite the process of nominations to help GSTAT benches function properly without delays.

1. The delay in state-level nominations for Technical Members in the GST Appellate Tribunal (GSTAT) is preventing the tribunal from functioning efficiently across India, leading to prolonged litigation and overburdening of higher courts.
2. The GSTAT, which aims to alleviate pressure on higher courts and facilitate a more effective GST system, is currently not fully operational due to the absence of technical members in the State Benches.
3. The GSTAT, composed of a Principal Bench in New Delhi and 31 State Benches, requires the complete appointment of its members for a smooth and timely resolution of disputes related to the Goods and Services Tax (GST).
4. The tribunal's inability to operate fully due to the delayed nominations process is negatively impacting the broader GST market by hindering the flow of finance, potentially contributing to future inflation within the Indian economy and disrupting business operations.

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