On February 18, 2023, a significant development was announced by the Goods and Services Tax (GST) Council: the approval of the GST Appellate Tribunal. Union Finance Minister Nirmala Sitharaman stated that a Group of Ministers (GoM) report recommendations on the issue have been “accepted with slight modifications in the language.” The final draft amendments to the GST laws shall be distributed to members for their feedback. Further, the chairperson has been authorized to finalize the same.
The decision benefits not only businesses, which will now have a dedicated tribunal to handle GST-related matters, but also courts, which have previously faced the burden of GST-related disputes.
Additionally, it is also anticipated by some experts that this decision will also facilitate the “ease of doing business” and further make the country a lucrative destination for trade. It is self-evident that the implementation of the GST was a historic decision in the Indian tax sector. Further, the creation of a GST Appellate Tribunal to handle GST-related issues will signal to the world that India is working and taking steps to make the country more business-friendly and a preferred destination for trade and commerce.
GST was designed by the Central government to make taxation simple for citizens to comply under the singular goal of One Nation, One Tax. The establishment of this tribunal further aims to institutionalise government’s citizen-centric approach on the subject. Another important factor is that it will assist both the central and the state governments, reducing conflicts between them and ensuring uniformity in dispute resolution.
In addition, because the tribunals are more adaptable than regular courts, they provide justice more quickly and are economical. The fact that tribunal’s procedures are simple enough for a layperson to understand makes them one of the most popular Alternative Dispute Resolution (ADR) options.
The GST Council meeting also decided to pay the entire outstanding GST balance of Rs. 16,982 crores for June 2022 to the States and UT. Additionally, a Group of Ministers (GoM) report on capacity-based taxation and a special composition scheme for some GST-related industries were also accepted by the council.
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