Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023

October 27, 2023

The Finance Ministry has recently issued rules governing the appointment and conditions of service for the president and members of Goods and Services Tax (GST) Appellate Tribunals. These rules, known as the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023, provide a framework for the selection, tenure, and benefits of the tribunal’s key personnel.

Age Limits Set

In a significant decision during its 52nd meeting on October 7, the GST Council, chaired by the Union Finance Minister and composed of state counterparts, established age limits for the president and members of the GST Appellate Tribunal (GSTAT). The maximum age limit for the president has been set at 70 years, while members should not exceed 67 years of age.

Expansion of GSTAT Benches

To enhance the efficiency of the GST dispute resolution process, the Finance Ministry had previously announced the establishment of 31 benches of GSTAT in September. These benches are distributed across 28 states and 8 Union Territories. The creation of state-level benches is expected to significantly benefit businesses by expediting the resolution of disputes related to GST.

Faster Dispute Resolution

Currently, taxpayers who are dissatisfied with tax authorities’ rulings must approach the respective High Courts for resolution. This process often results in delays as High Courts are burdened with a backlog of cases and lack specialized benches to handle GST-related matters. The establishment of GSTAT benches at the state level is a crucial step toward streamlining the resolution process and ensuring a faster turnaround for taxpayers.

Distribution of GSTAT Benches

According to the notification, the allocation of GSTAT benches is as follows:

Gujarat: Two benches
Union Territories (Dadra and Nagar Haveli and Daman and Diu): Two benches
Goa and Maharashtra: Three benches combined
Karnataka: Two benches
Rajasthan: Two benches
Uttar Pradesh: Three benches
West Bengal, Sikkim, Andaman and Nicobar Islands, Tamil Nadu, and Puducherry: Two benches each
Kerala and Lakshadweep: One bench
Northeastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura): One bench each