The Ministry of Finance has officially announced the establishment of 31 GST Appellate Tribunal (GSTAT) benches, distributed across all states and Union Territories. This strategic move is designed to streamline the resolution of disputes arising within the GST tax framework, offering a more efficient solution for businesses. Currently, taxpayers faced with disagreements stemming from tax authority decisions are compelled to seek recourse through their respective High Courts, a process often plagued by protracted delays due to an overwhelming backlog of cases and the absence of dedicated GST-focused benches.
The notification, dated September 14, delineates the allocation of GSTAT benches as follows: UTs Dadra and Nagar Haveli and Daman and Diu, alongside Gujarat, will each host two benches. Meanwhile, Goa and Maharashtra will jointly accommodate three benches. Karnataka and Rajasthan will house two benches apiece, while Uttar Pradesh will have a total of three.
The eastern region, encompassing West Bengal, Sikkim, and the Andaman and Nicobar Islands, will collectively host two GSTAT benches. Similarly, Tamil Nadu and Puducherry will share two benches, while Kerala and Lakshadweep will have a single bench. The northeastern states, including Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura, will jointly oversee one GSTAT bench. In all other states, a single GSTAT bench will be established.
The government's plan encompasses the formation of 31 tribunals, which will be strategically located in major cities throughout the country.
Rajat Mohan, Senior Partner at AMRG & Associates, emphasized the pivotal role played by GST tribunals in resolving tax-related matters. He underscored their significance as impartial, expert forums that will enhance efficiency in addressing tax disputes. These tribunals are poised to uphold principles of fairness, accountability, and the rule of law in the realm of tax administration. According to Mohan, the next phase will entail identifying suitable tribunal locations, appointing qualified members, and provisioning essential infrastructure and resources.
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