GST Appellate Tribunal (Procedure) Rules, 2025
Centre Notifies Rules for GST Appellate Tribunal
Context: In a significant move to operationalise the Goods and Services Tax Appellate Tribunal (GSTAT), the Ministry of Finance officially notified the GST Appellate Tribunal (Procedure) Rules, 2025.
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- These rules, effective from April 24, aim to create a uniform, transparent, and efficient mechanism for resolving GST-related disputes.
Goods and Services Tax Appellate Tribunal (GSTAT)
The Goods and Services Tax Appellate Tribunal (GSTAT) is a quasi-judicial body constituted under Section 109 of the Central Goods and Services Tax Act, 2017, to adjudicate appeals against orders passed by the Appellate or Revisional Authorities under GST laws. It serves as the second appellate forum for GST disputes and is the first common forum to resolve disputes between the Centre and the States, ensuring uniformity in the interpretation and implementation of GST across India.
Structure and Jurisdiction:
- National Bench: Located in New Delhi, headed by a National President along with Technical Members representing the Centre and the States.
- Regional Benches: Established in major cities such as Mumbai, Kolkata, and Hyderabad, each comprising a Judicial Member and two Technical Members (one each from Centre and State).
- State Benches: Constituted on the recommendations of the GST Council, with multiple benches across states to enhance accessibility and expedite dispute resolution.
- Jurisdiction: The Tribunal has jurisdiction over appeals filed against orders of the first Appellate Authorities and Revisional Authorities under GST laws, covering disputes related to tax assessments, liability determination, penalties, refunds, and other GST-related matters.
Powers and Functions: GSTAT exercises powers akin to a civil court under the Code of Civil Procedure, 1908. It can summon individuals, enforce attendance, examine witnesses, and require the production of documents. Its key powers include:
- Hearing and deciding appeals against orders of lower authorities.
- Confirming, modifying, annulling, or remanding orders back to the original adjudicating authorities.
- Imposing penalties, revoking or canceling GST registrations.
- Rectifying errors in its own orders and granting interim relief when necessary.
- Decisions are generally taken by majority. In case of a tie, the matter is referred to the National or State President, who may further refer it to another bench for a final decision.
Significance and Benefits:
- Uniformity and Consistency: As the first common forum for Centre-State GST disputes, GSTAT ensures uniform interpretation and application of GST laws across India, reducing conflicting rulings.
- Speedy Resolution: Dedicated GSTAT benches expedite the adjudication process, reducing the burden on High Courts and improving tax certainty for businesses.
Reduced Litigation Costs: Recent GST Council recommendations have lowered
- monetary limits and pre-deposit requirements for filing appeals, making the appellate process more accessible and less costly for taxpayers.
Ease of Doing Business: By providing a specialized and streamlined dispute resolution mechanism, GSTAT bolsters business confidence and supports the ease of doing business in India.
Digital Filing, Hybrid Hearings, and Streamlined Procedures
- The new rules mandate that all appeals must be filed electronically through the GSTAT portal, accompanied by a certified copy of the original order.
- Detailed procedures have also been laid down for submitting affidavits, summoning documents, examining witnesses, and introducing additional evidence—subject to the tribunal’s approval.
- Hearings before the GSTAT will be public by default and conducted in hybrid mode, allowing parties to participate either physically or virtually.
- If any party fails to appear, the tribunal is empowered to proceed with an ex parte hearing.
- Authorised representatives, including lawyers and tax professionals, are required to submit a Power of Attorney before representing clients.
- A formal dress code for appearances before the tribunal has been prescribed, with provisions for seasonal relaxations.
- Additionally, all final orders will be digitally signed and uploaded on the GSTAT portal for easy access.
Comprehensive Framework Covering Every Stage
- Framed under Section 111 of the Central GST Act, 2017, the GSTAT Procedure Rules span 124 provisions across 15 chapters.
- They comprehensively address every major procedural aspect, from filing appeals and presenting evidence to attending hearings and issuing final orders.
- The goal is to streamline the appeals process under GST law, reduce ambiguity, and enhance the efficiency and accessibility of justice for taxpayers across India.
Industry Experts Hail the Move
- Sivakumar Ramjee, Executive Director – Indirect Tax at Nangia Andersen LLP, welcomed the development, stating, Having regional benches will make justice more accessible.
- A taxpayer in Coimbatore won’t have to travel to Delhi to have their case heard.
- With pre-deposit requirements and proper documentation, only serious and genuine cases will reach the tribunal, significantly reducing frivolous appeals and expediting dispute resolution.
- Echoing this sentiment, Sandeep Sehgal, Partner – Tax at AKM Global, said the new rules would “bring uniformity, shorten litigation timelines, and ensure faster resolution of GST disputes,” ultimately benefiting both taxpayers and the overall tax administration system.
