Finance Minister Nirmala Sitharaman launches GST Appellate Tribunal

Union finance minister Nirmala Sitharaman announced the setting up of the Goods and Services Tax Appellate Tribunal (GSTAT) in New Delhi on Wednesday, calling it a major milestone in the evolution of India’s indirect tax system.

“GST was introduced in 2017 with the aim of one nation one market. GST has grown as a reliable revenue source and has become a foundation for India's growth story. GST evolving around the principles of ease of living and simplicity,” said Sitharaman during the launch.

What is GSTAT?

The GSTAT will serve as an independent, nationwide forum for appeals in matters pertaining to the GST, with a Principal Bench in Delhi and 31 state benches across 45 locations. An e-Courts Portal was also launched, in collaboration with the National Informatics Centre, to enable online filing, case tracking and virtual hearings.

Introduced following the GST 2.0 reforms, the tribunal aims to deliver jargon-free rulings, simplified procedures, digital-by-default filings and timely hearings.

“Each Bench of the GSTAT will comprise two Judicial Members, one Technical Member (Centre), and one Technical Member (State), ensuring a balanced composition of judicial expertise and technical knowledge from both Central and State administrations,” the government revealed in a release.

Tribunals are institutional bodies set up to settle certain types of dispute thus discharging certain quasi-judicial duties. These intend to reduce the workload for the judicial courts. There have been appellate tribunals for a variety of purposes including Income Tax (ITAT), companies (NCLAT) among others. This tribunal will help consumers to seek resolution in matters of GST-related disputes. Earlier, most GST grievances were handled through the GST portal, with some legal disputes occasionally reaching the judicial courts.

The GSTAT is expected to reduce litigation delays, ease cash flows, and boost confidence among MSMEs, exporters and taxpayers.

This body will help fast track the clearing of backlogs and ensure consistency in GST jurisprudence. GSTAT will facilitate streamlining of India’s tax dispute resolution, reducing legal frictions, and strengthening the credibility of the GST regime as a fair, transparent, and efficient system.