GST tribunals likely to take six more months to begin operations

The goods and services tax tribunals (GSTAT) could take another six months to get operational, with many states yet to appoint members or allocate buildings for the offices.

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The tribunals were expected to start functioning from December-end 2024.


“Appointments to the state bench and supporting staff for the members are pending…This may take another six months,” a senior official told ET on condition of anonymity.

The GSTAT will have around 44 benches, each with four members, three from the central government and one from the state government.

“The process of application and interviews of members is completed but the final shortlisting and verification is in process,” the official said.

Besides, the real estate for the tribunals is still pending and only 50% of the locations have been identified, according to the official.

The GSTAT operations will be fully electronic and paperless.

While the software for GSTAT is ready, the IT infrastructure procurement is pending, which is likely to be completed by March-end, the official said.

In May 2023, the Centre had appointed Sanjaya Kumar Mishra, former chief justice of Jharkhand High Court, as the president of GSTAT for a period of four years.

In February 2024, the Centre invited applications for appointments to the posts of the judicial members, technical members on the principal bench in Delhi and the state benches of GSTAT.

A panel headed by the then revenue secretary Sanjay Malhotra was entrusted to initiate the process of selection and appointment of judicial and technical members.

Experts say a fully functional tribunal will ease pressure on the judiciary and business, as the delay has resulted in pending litigation at the high courts.

Also Read: GST tribunals likely to take six more months to begin operations

“With no GSTAT in place, the role of the high courts in entertaining writs when the petitioners do not have any other recourse or cannot seek alternative remedy before other competent authorities has become crucial in GST, amplifying the burden on the higher courts,” said Shivam Mehta, executive partner at Lakshmikumaran and Sridharan Attorneys. “The taxpayers are left hanging if the high courts refuse to entertain writs on grounds such as the existence of an alternative remedy, issue not involving a question of law, etc.”

A total of 14,227 GST appeals were pending as of August 2023.

The number has grown since then.