Recently, the Goods and Services Tax (GST) Council has approved the creation of a national tribunal to address the disputes related to GST. The absence of GST Appellate Tribunals has led to a backlog of cases, and taxpayers are filing writ petitions directly in the High Court. The creation of the GST Appellate Tribunal (GSTAT) will provide taxpayers with a specialized forum for redressal of their grievances.
Need for the Tribunal
The absence of GST Appellate Tribunals has resulted in taxpayers approaching the High Court, which is already overburdened with a large number of cases. This has led to a backlog of GST cases, and taxpayers are forced to wait for justice while revenue authorities aggressively pursue their orders. Moreover, the High Court may not have specialized benches for GST matters. Therefore, there was a need for a specialized forum to address GST disputes.
About GST Appellate Tribunal (GSTAT)
The GST Appellate Tribunal (GSTAT) is a specialized authority to resolve disputes related to GST laws at the appellate level. Section 109 of the CGST Act mandates the constitution of a GSTAT and its benches. The principal bench of the GSTAT will be located in New Delhi, and each state can decide on the number of benches or boards they require, subject to GST council approval.
Composition
The bench will consist of two judicial members and two technical members, with the selection panel including a senior judicial member from the State High Court. The Tribunal is likely to be headed by a former Supreme Court judge or a former Chief Justice of a High Court.
Powers of the Appellate Tribunal
The GST Appellate Tribunal holds the same powers as a court under the Code of Civil Procedure, 1908. It is deemed to be a Civil Court for trying a case. The tribunal has the power to hear appeals and pass orders and directions, including those for the recovery of amounts due, enforcement of its orders, and rectification of mistakes. It also has the power to impose penalties, revoke or cancel registrations, and take other measures necessary to ensure compliance with GST laws.
Framework of the Appellate Tribunal
The framework of the Appellate Tribunal may permit the resolution of disputes involving dues or fines of less than Rs. 50 lakh by a single-member bench. This will help to expedite the resolution of small disputes and reduce the backlog of cases.
Why In News
The Goods and Services Tax (GST) Council has taken a significant step towards simplifying the GST dispute resolution process by approving the creation of a national tribunal. The tribunal will provide taxpayers with a specialized forum for resolving their grievances related to GST laws.
MCQs on Framework of GST Appellate Tribunal
-
What is the primary purpose of the GST Appellate Tribunal?
A. To issue GST registrations to taxpayers
B. To provide a specialized forum for resolving GST disputes
C. To audit GST returns filed by taxpayers
D. To collect GST dues from taxpayers
-
Who can be appointed as a member of the GST Appellate Tribunal?
A. Only judicial members
B. Only technical members
C. Both judicial and technical members
D. Only members nominated by the GST Council
-
What powers does the GST Appellate Tribunal hold as per the Code of Civil Procedure?
A. It can issue arrest warrants for non-compliance with GST laws
B. It can cancel GST registrations without notice
C. It can impose penalties and order recovery of amounts due
D. It can order imprisonment of taxpayers for GST violations
-
What type of cases can be heard by a single-member bench of the GST Appellate Tribunal?
A. Only cases related to GST dues or fines exceeding Rs. 50 lakh
B. Only cases related to GST dues or fines less than Rs. 50 lakh
C. All cases related to GST disputes
D. No cases can be heard by a single-member bench
Boost up your confidence by appearing our Weekly Current Affairs Multiple Choice Questions
