Constitution of the GST Appellate Tribunal (GSTAT)

The hearing of appeals by GSTAT, the refined version of the former SE tribunal, is a crucial process involving the participation of the president or senior individuals. GSTAT was established under the CGST Act to handle cases related to Indirect Taxes, taking over the workload of the existing CESTAT tribunal. While CESTAT continues to function, the formation of GSTAT was essential to address the backlog of cases effectively. GSTAT comprises a Principal bench and 31 State benches, a significant increase from CESTAT’s one Principal bench and eight regional benches. Each bench in GSTAT is composed of two Judicial Members and two Technical Members, allowing for a more comprehensive and informed approach to resolving appeals. The establishment of GSTAT under the CGST Act marks a shift in the handling of Indirect Tax appeals, streamlining the process and ensuring efficient resolution of cases.

The President of the Principal bench is the Head of the Principal Bench of the GSTAT. Similarly, the Vice President is in charge of the State benches. Every Principal Bench will have one President, one Judicial Member and two Technical Members (one from the Center and one from the State). Similarly, every State bench will have two Judicial Members – one of whom will be the Vice President, and two Technical Members (one from the State and one from the Center).

A judge from a high court or district court with at least 10 years of experience is an important Judicial Member. There may be members appointed directly from the district court or advocates with at least 10 years of experience in indirect tax. The Technical Member from the Center must be an IRS officer with at least 25 years of service, while the Technical Member from the State must be a State Government officer with at least 25 years of service. These are the two main conditions. In cases where the State government may not have enough qualified individuals to send to the GST Appellate Tribunal, they may request the GST Council for relaxation of the 25-year service requirement. Individuals under the age of 50 are not eligible for an appointment.

Every appeal must be heard by two members – one Judicial and one Technical Member. Depending on internal procedures and guidelines, the Technical Member may be from the Center or the State. For smaller cases up to 50 lakh rupees, and with no involvement of any question of law, a single member may hear the appeal. These decisions are made by the registry.

As a taxpayer, this does not change much for businesses. Normally, businesses go to the registry, file appeal, and most likely it gets filed online on the GSTN portal. The registry will automatically decide which members will hear the appeal. In cases up to 50 lakh rupees with no question of law involved, it may be heard by a single member.

In the initial years, when an appeal is filed, there may often be questions of law, so two members will likely hear your appeal. If the members don’t agree, another member from a State bench or a different State bench may be involved to reach a majority opinion. The final decision will be made by members who agree by a majority.