The establishment of the Goods and Services Tax Appellate Tribunal (GSTAT) has been on hold since the introduction of the GST Act in July, 2017. According to a parliamentary response, a total of 14,227 GST appeals are pending with High Court as of August, 2023.
The revised Finance Bill of 2023 suggested altering Section 109 of the Central GST Act to aid in the formation of the GSTAT and its branches. However, it did not set a specific deadline. This formation will be done upon the Council’s recommendations and will be announced through a notification, taking effect from a date to be determined later.
In the latest development on the subject, the Government has appointed Justice (retd) Sanjaya Kumar Mishra as president of the GSTAT on May 6, 2024.
Benches of every tribunal in India must have a judicial member and a technical member. A judicial member is an expert on legal procedure while the technical member is an expert on the law a tribunal is adjudicating on.
As the constitution of the Appellate Tribunal Benches are on the verge, it is important to discuss about the procedures of filing appeal before GSTAT. With this article, we would like to give our readers a glimpse of filing appeal before GSTAT and the other how abouts surrounding the procedures of appeal filing.
Understanding GSTAT
The GSTAT is a quasi-judicial body established under the Central Goods and Services Tax Act, 2017, to hear appeals against the orders passed by the Appellate Authority or the Revisional Authority. It plays a crucial role in the dispute resolution mechanism under the GST framework.
When to File an Appeal
An appeal to the GSTAT must be filed within three months from the date on which the order sought to be appealed against is communicated to the aggrieved person. The department can file an appeal before GSTAT within 6 months from the date on which the order is passed.
It’s important to note here that since the GSTAT has not been constituted yet, the calculation of time limit of 3/6 months becomes crucial.
To remove the difficulties in this regard, the Government has issued an Order No. 09/2019 dated December 3, 2019 and clarified that the period of 3/6 months shall be calculated from the date of communication of the impugned order or the date on which the President or State President enters the office, whichever is later.
Therefore, concluding the above order, since the President has already been appointed on May 6, 2024, it can be inferred that the 3/6 months calculation has already been started and the aggrieved taxpayers are advised to adhere to the timeline of filing appeal before GSTAT.
Appealable Order
The appeal before GSTAT may be filed by the aggrieved taxpayer against the order passed u/s 107 or u/s 108 by the Appellate Authority.
Filing an Appeal
The appeal before GSTAT must be filed in Form GST APL-05 if the appeal is being filed by the taxpayer and in Form GST APL-07 if the appeal is being filed by the department. The functionality of filing online appeal before GSTAT has not been started yet; therefore, initially the appeal will be filed manually.
The fees for filing appeal shall be Rs. 1,000 for every Rs. One lakh of the tax, fine, or penalty determined in the order appealed against. The maximum fees shall be Rs. 25,000.
There will be a pre-deposit of the tax demands as well which is 25% of the remaining amount of tax in dispute.
If the above-mentioned amount is paid by the taxpayer, the balance amount of tax in disputed shall be deemed to be stayed till the disposal of the appeal.
The form should clearly state the facts of the case, the points for determination, the grounds of appeal, and the relief sought.
Representation
Taxpayers can represent themselves or authorize a representative like a lawyer or a chartered accountant to present the case before the GSTAT.
Order of GSTAT
The GSTAT shall provide the parties to the appeal an opportunity of being heard and pass such order as it deems fit by confirming, modifying or annulling the decision or order appealed against or may refer the case back to the Appellate Authority.
GSTAT may adjourn the hearing if sufficient cause is shown but not more than 3 times.
GSTAT may amend the order passed by it to rectify the error on its own or at the request of the parties to appeal within 3 months of the original order after giving the parties an opportunity of being heard.
The order passed by GSTAT shall be final and binding on the parties to the Appeal.
Conclusion
While GSTAT’s establishment remains awaited, understanding its appeal filing procedures is vital for taxpayers. As Justice Mishra’s appointment signals progress, clarity on timelines, forms, and representation options is crucial for those navigating the GST framework.
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About the Author: The author is Ruchika Bhagat, FCA helping foreign companies in setting up and closing businesses in India and complying with various tax laws applicable to foreign companies while establishing a business in India. Neeraj Bhagat & Co. Chartered Accountants is a well-established Chartered Accountancy firm founded in the year 1997 with its head office in New Delhi.
Author Bio
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