Appointments Made: 33 Tech Specialists to GST Appeals Court
The Goods and Services Tax Appellate Tribunal (GSTAT), established as the second appellate authority within the GST framework, is yet to be fully operational nationwide, primarily due to significant delays in appointing Technical Members at the state level.
While the Principal Bench in New Delhi and 31 State Benches across 46 locations have been notified, most states have not completed the appointment process because their Search-cum-Selection Committees have not been constituted or have not submitted recommendations. Only a few states—Uttar Pradesh, Odisha, Gujarat, Bihar, and Maharashtra/Goa—have provided appointments so far.
These delays are causing concern because GSTAT’s full functionality is crucial to ensuring faster dispute resolution under GST laws and to reduce the burden on High Courts and the Supreme Court. The prolonged delay in making GSTAT fully operational has led to extended litigation for taxpayers and excess pressure on higher courts for GST-related cases.
The Parliamentary Standing Committee on Finance has strongly urged the Ministry of Finance to adopt a time-bound and proactive approach to coordinate with states and expedite the constitution and functioning of all GSTAT benches nationwide. The government has recently appointed 33 technical members and key judicial members at the principal bench level, indicating progress towards starting GSTAT hearings soon, but state-level technical member appointments remain a bottleneck.
In a positive development, two retired bureaucrats, A Venu Prasad (IAS, Punjab Cadre of 1991 batch) and Anil Kumar Gupta (IRS), will serve as Technical Members (State) on the Principal Bench of GSTAT at New Delhi. They will draw a monthly salary of Rs 2.25 lakh.
The Committee emphasizes the need for parallel, regular recruitment for long-term stability and efficiency in the GSTAT. If judicial positions and state-level coordination progress swiftly, the first benches of GSTAT could begin operations before the year ends.
For GST to evolve into a truly stable tax regime, it must deliver not just ease of compliance, but speed and certainty in dispute resolution. The persistent delays in the GSTAT's full functionality adversely impact the larger GST ecosystem, resulting in prolonged litigation, overburdening of High Courts, and denial of timely relief to taxpayers.
Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thronton Bharat, commented that the absence of a functional GSTAT has led to mounting litigation and legal uncertainty for businesses. The Committee has urged the Ministry to actively pursue and coordinate with the remaining State Governments to expedite the constitution of Search-cum-Selection Committees.
With the Tribunal's framework, rules, and appointments beginning to take shape, there's a sense of cautious optimism. The GSTAT was constituted under Section 109 of the Central Goods and Services Tax Act, 2017, and has a tenure of 4 years or till they attain the age of 67 years, whichever is earlier. The Standing Committee on Finance has expressed concern over the Tribunal not being fully operational nationwide.
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- The Parliamentary Standing Committee on Finance has urged the Ministry of Finance to expedite the constitution and functioning of all Goods and Services Tax Appellate Tribunal (GSTAT) benches nationwide, as the full functionality of GSTAT is crucial for faster dispute resolution under GST laws and to reduce the burden on High Courts and the Supreme Court.
- While the absence of a functional GSTAT has led to mounting litigation and legal uncertainty for businesses, with the Tribunal's framework, rules, and appointments beginning to take shape, there's a sense of cautious optimism.
- In a positive development, two retired bureaucrats, A Venu Prasad (IAS, Punjab Cadre of 1991 batch) and Anil Kumar Gupta (IRS), will serve as Technical Members (State) on the Principal Bench of GSTAT at New Delhi, drawing a monthly salary of Rs 2.25 lakh.
