GST Apellate Tribunal (GSTAT)- A Quick Overview

The CBIC has constituted the Goods and Services Tax Appellate Tribunal (GSTAT), paving the way for the long-awaited operationalisation of the GSTAT. It has been constituted under Section 109 of the CGST Act, 2017, as the Appellate Tribunal for deciding appeals filed under Section 112 against orders passed under Section 107 or Section 108, with jurisdiction and powers defined under Section 111 of the CGST Act. GSTAT Rules has been made effective from 24 April 2025, establishing the comprehensive framework of GSTAT’s functioning, followed by an announcement regarding its operationalization in the month of September 2025.

The launch of GSTAT is a significant step in the continuing evolution of India’s indirect tax system. It will provide taxpayers with a specialized forum to seek justice and will bring greater orderliness, predictability, and credibility to the GST regime. This development is a significant milestone addressing the long-standing demands from stakeholders for quick setting up and implementation of this dedicated appellate mechanism under the GST.

Given that GSTAT is now a reality, it becomes imperative for taxpayers to understand the legal framework, procedural guidelines and other key aspects governing the functioning of GSTAT. In this comprehensive guide, we’ll walk you through everything you need to know about the GST Appellate Tribunal in simple terms.

1. WHAT IS THE GST APPELLATE TRIBUNAL

The GST Appellate Tribunal is a specialized court, second tier appellate forum that hears appeals related to GST matters. It acts as a common platform to settle conflicts between taxpayers and tax authorities.

The Tribunal deals with:

• Appeals against orders from the Appellate Authority
• Appeals against orders from the Revisional Authority
• Anti-profiteering cases where businesses are accused of not passing on GST benefits to customers

2. STRUCTURE & COMPOSITION OF GST APPELLATE TRIBUNAL

GSTAT is structured with a Principal Bench in New Delhi and 31 State Benches have been designated across 28 states and union territories, to serve different states and regions disputes resolution.

Composition of Benches:

Principal Bench: Consists of a President (a Supreme Court Judge or a Chief Justice of a High Court), supported by one Judicial Member and one Technical Member from both the Centre and the States.

State Benches: Each comprises two Judicial Members, one Technical Member (Centre), and one Technical Member (State).

Vice-President: The senior-most Judicial Member within the State Benches is designated as Vice-President for those benches, exercising specified powers of the President.

Current Leadership

Justice (Retd.) Sanjaya Kumar Mishra, former Chief Justice of the Jharkhand High Court, has been appointed as the President of GSTAT. His appointment follows selection by a Search-cum-Selection Committee headed by the Chief Justice of India.

Jurisdictional Distribution

The distribution of cases follows clear jurisdictional principles:

1. Principal Bench at New Delhi:

• Appeals involving any issue related to “place of supply”
• Anti-profiteering matters under Section 171(2) of CGST Act
• Cases pending before two or more State Benches where the President is satisfied that an identical question of law is involved.
• Cases involving the supply of OIDAR services and specified actionable claims (online money gaming) by a person located outside the taxable territory.
• Appeal in case of conflicting AAAR rulings in respect of the same legal entity, where the GSTAT will function as / has the powers of the National Appellate Authority for Advance Ruling.
• Any other matters specifically notified by the government on GST Council’s recommendation

2. State Benches across India: Handle all other appeals against orders passed by Appellate Authorities or Revisional Authorities within their territorial jurisdiction.

3. Single Member Bench: For appeals where the disputed amount (tax, input tax credit, fine, fee, or penalty) does not exceed ₹50 lakhs and no question of law is involved, a single member may hear the case with the President’s approval.

Appeal against the orders of the Principal Bench would lie directly before the Supreme Court unlike orders of the State Benches, which can be appealed before the High Court.

3. PROCESS FOR FILING AN APPEAL

The timeline for filing an appeal is:

• In all cases where the order sought to be appealed against is communicated before 1st April 2026, the appeal may be filed before the Appellate Tribunal up to 30th June 2026. (This move provides a one-time extended window for taxpayers to contest past orders that could not be appealed earlier due to non-constitution of the Tribunal, while bringing certainty for future litigation timelines).
• For orders communicated on or after 1st April 2026, the appeal is to be filed within three months from the date of communication.

The GSTAT can condone a delay of up to another 3 months on sufficient cause being shown.

And for Departmental Appeals, the time limit is 6 months, with a similar 3-month condonation period.

Cross objections must be filed within 45 days of receiving notice (extendable by another 45 days) using Form GST APL-06.

Form and manner of filing Appeal:

• The appeal is to be filed electronically in Form GST APL-05 along with a certified copy of the impugned order and supporting documents. In terms of rule 110 of the CGST Rules, only in cases where the OIA is not uploaded on the GST portal, uploading of the self-certified copy of the order is required.
• Post filing of the appeal, a provisional acknowledgement will be issued immediately in part A of GST APL 02A
• Final acknowledgement will be issued in part B of Form GST APL-02A upon removal of defects (if any), and the date of issue of the provisional acknowledgement shall be considered as the date of filing of appeal.

Pre-Deposit Requirements:

No appeal shall be filed unless the appellant has paid:

• The full amount of tax, interest, fine, fee, and penalty arising from the impugned order, as is admitted by him; and
• A sum equal to twenty percent (20%)of the remaining amount of tax in dispute arising from the said order. (This is in reference to the 10% already deposited in relation to the first appeal. This indicates that if 10% is deposited for the First Appeal, then only an additional 10% needs to be submitted. If this is a direct appeal to the Tribunal or if there was no payment made prior to the First Appellate Authority, then a total of 20% must be paid).
• Recent amendments to the Finance Act have revised the pre-deposit cap to ₹20 crore for both CGST and SGST, amounting to a total of ₹40 crore. Previously, this cap was set at ₹25 crore, resulting in a total of ₹50 crore.

Let’s apply this to the example:

1. Order-in-Original (Adjudication):

• • Disputed Tax Demand: Rs 50,00,000

2. First Appeal (to Appellate Authority):

• • Pre-deposit as per Section 107(6): 10% of Rs 50,00,000 = Rs 5,00,000
  • This amount must be paid to file the first appeal.

3. Second Appeal (to GSTAT):

• • The first appeal is lost, and the order is upheld. The taxpayer now files an appeal with GSTAT.
  • The pre-deposit as per Section 112(8) is an additional amount. Recent amendments and interpretations clarify this is now an additional 10% of the disputed tax, not a cumulative 20% on top of the original 10%.
  • Additional Pre-deposit Required: 10% of Rs 50,00,000 = Rs 5,00,000.

Correct Total Pre-Deposit Paid:

• Amount paid for First Appeal: Rs 5,00,000
• Additional Amount paid for GSTAT Appeal: Rs 5,00,000
• Total Pre-Deposit to reach GSTAT: Rs 10,00,000

Filing Fees:

• For filing or restoration of appeal, the fee is ₹1,000 per ₹1,00,000 of the tax or input tax credit or fine or fee or penalty, subject to a minimum of ₹5,000 and maximum of ₹25,000.
• For appeals with no demand of tax, interest, and penalty is ₹5,000.
• No fee is needed for applications to rectify errors under section 112 (10) of the CGST Act.
• For any application other than the above and except departmental applications, the fee is ₹5,000.

4. GSTAT Rules

Hearing and Disposal:

Upon admission, the Tribunal issues notice to the respondent and schedules hearings. The proceedings are quasi-judicial in nature, with opportunities provided for both parties to present arguments, evidence, and legal submissions. The Tribunal is empowered to pass such orders as it thinks just and proper, including confirming, modifying, or annulling the impugned order.

5. CONCLUSION

Filing an appeal before the GST Appellate Tribunal (GSTAT) involves more than simply challenging an order. It requires meticulous preparation, a clear understanding of the legal and factual issues involved, and strict compliance with procedural requirements. Factors such as statutory timelines, mandatory pre-deposit obligations, and prescribed documentation must be carefully addressed to ensure that the appeal is admitted and effectively presented. Given the complexities of GST litigation, a strategic and well-structured approach can significantly enhance the prospects of a favourable outcome.

With the GSTAT set to play a pivotal role in the GST dispute resolution framework, taxpayers and professionals must familiarize themselves with its structure, jurisdiction, and procedural mechanisms.

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For any further information or clarification, the author can be reached at cashubhikhandelwal@gmail.com

DISCLAIMER: The views expressed are strictly of the author. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.