Finance Minister Nirmala Sitharaman on Wednesday, September 24, launched the Goods and Services Tax Appellate Tribunal (GSTAT), describing it as a landmark step in strengthening India’s indirect tax system. The new body is expected to ease the legal burden on high courts and provide taxpayers with quicker and more predictable resolution of disputes.
31 benches to hear central and state cases
The GSTAT will function with 31 benches across the country, including a principal bench in Delhi. For the first time, both central and state GST cases will be heard at the same forum. Officials said this is expected to cut delays, reduce inconsistent rulings and ease the pressure on overburdened high courts.
Setting up the tribunal was not without challenges as the government had to address questions of jurisdiction, appointments and coordination between central and state authorities. FM Sitharaman acknowledged the complexity, calling the launch “a crucial step in India’s next-generation tax reforms.”
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Relief for MSMEs and taxpayers
Micro, small and medium enterprises (MSMEs) are expected to benefit significantly, as the tribunal will allow them to pursue disputes without waiting for separate clarifications from the GST Council. By consolidating adjudication, officials said, GSTAT would lower legal friction and provide taxpayers with greater certainty.
Linked to broader GST 2.0 reforms
The tribunal forms part of the government’s GST 2.0 framework, which focuses on rationalising rates, simplifying rules and making compliance easier. FM Sitharaman said the reforms have already boosted demand in sectors such as automobiles, where record sales have been reported in recent months.
The Finance Minister described GSTAT as “a manifestation of the new approach”, combining simplified processes with faster access to justice.
