Budget 2024: Tax expert calls for swift formation of GST Appellate Tribunals
As concerns over tax notices and the litigation burden on High Courts persist, industry experts have stressed the need for the creation of Goods and Services Tax (GST) Appellate Tribunals. Finance Minister Nirmala Sitharaman is gearing up to present the sixth Union Budget under the Modi government on February 1, 2024. With the Lok Sabha polls looming, industry leaders anticipate crucial budget announcements.
However, acknowledging that this budget will be a vote-on-account with limited changes, one of the expert, highlighted the critical industry ask. “I think, one thing which the government should do, and is the ask of the industry also; (is that) there is no tribunal which is still being formed,” he said.
While Chaudhary underscored the need for these tribunals, it’s to be noted that the government notified the creation of 31 GST Appellate Tribunals — 31 state and one national — on October 25, 2023.
Last week, on the recommendation of the GST Council, the Centre notified the creation of the principal bench of the GST Appellate Tribunal (GSTAT) to be set up in Delhi.
Sources indicate that the government expects these Appellate Tribunals to be operational by April.
He while highlighting the pressure around tax notices, praised the government’s proactive clarifications. “The government has been proactively reaching out and giving clarifications on disputed issues so that at least interpretation issues don’t arise and there is lesser litigation…and there is clarity for the future.”
However, he said, “A lot of assessees are waiting for the formation of (the tribunals) so that the litigation process will start and fasten up.”
Understanding GST Tribunals
The tribunal serves as a secondary appellate forum in GST laws and acts as the primary common platform for dispute resolution between the Centre and states. Functioning as a unified forum, the GST Appellate Tribunal will ensure consistency in resolving disputes arising within the GST framework, promoting uniform implementation of GST across the country.
Their establishment was envisaged to streamline the dispute resolution process, ensuring a fair and impartial hearing for both taxpayers and the tax authorities.
Establishing these tribunals would not only expedite dispute resolution but also alleviate the burden on higher courts, fostering a more efficient and transparent GST ecosystem.