Introduction: The Central Goods and Services Tax (Second Amendment) Bill, 2023, seeks to bring crucial changes to the existing Central Goods and Services Tax Act, 2017. Introduced in Lok Sabha as Bill No. 159 of 2023 on 13th December 2023, the amendments primarily focus on sections 109 and 110, aiming to establish the Goods and Services Tax Appellate Tribunal.
Detailed Analysis:
1. Background and Objectives: The Statement of Objects and Reasons highlights the need for a Goods and Services Tax Appellate Tribunal, the second appellate authority within the GST framework. The absence of such tribunals has led taxpayers to seek relief directly from High Courts, overburdening them.
2. Alignment with Tribunal Reforms Act, 2021: Amendments to sections 109 and 110 are essential to align the Central Goods and Services Tax Act, 2017, with the Tribunal Reforms Act, 2021 (33 of 2021). The alignment is crucial for the administrative process to operationalize the Goods and Services Tax Appellate Tribunals promptly.
3. Provisions of the Bill: The Bill proposes changes to section 110, specifying qualifications and conditions for the appointment of President and Members of the Appellate Tribunal. Noteworthy amendments include the eligibility criteria for appointment and the term limits for the President and Members.
4. Statement by Nirmala Sitharaman: Finance Minister Nirmala Sitharaman, in her statement, emphasizes the urgency of aligning the Central Goods and Services Tax Act with the Tribunal Reforms Act. The Bill aims to achieve this alignment, ensuring a smooth operationalization process for the Tribunals.
Conclusion:
The Central Goods and Services Tax (Second Amendment) Act, 2023, addresses a critical gap in the GST framework by introducing provisions for the establishment of Goods and Services Tax Appellate Tribunals. The amendments outlined in the Bill, particularly in sections 109 and 110, signify a step towards efficient dispute resolution within the GST system. As the Bill progresses through Parliament, its impact on taxpayers and the broader tax administration landscape will become clearer.
Note: The provided article is a general template and may need further customization based on specific information or developments related to the Central Goods and Services Tax (Second Amendment) Act, 2023.
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AS INTRODUCED IN LOK SABHA
Bill No. 159 of 2023
THE CENTRAL GOODS AND SERVICES TAX (SECOND AMENDMENT) BILL, 2023
A
BILL
further to amend the Central Goods and Services Tax Act, 2017.
BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:—
1. Short title.
This Act may be called the Central Goods and Services Tax (Second Amendment) Act, 2023.
2. Amendment of section 110.
In section 110 of the Central Goods and Services Tax Act, 2017,—
(A) in sub-section (1),—
(I) in clause (b), after sub-clause (ii), the following sub-clause shall be inserted, namely:—
“(iii) has been an advocate for ten years with substantial experience in litigation in matters relating to indirect taxes in the Appellate Tribunal, Customs, Excise and Service Tax Appellate Tribunal, State Value Added Tax Tribunal, by whatever name called, High Court or Supreme Court;”;
(II) the following proviso shall be inserted, namely:—
“Provided that a person who has not completed the age of fifty years shall not be eligible for appointment as the President or Member.”;
(B) in sub-section (9), for the words, “sixty-seven years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years”, the words “seventy years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years subject to the age-limit specified above” shall be substituted;
(C) in sub-section (10), for the words, “sixty-five years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years”, the words “sixty-seven years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years subject to the age-limit specified above” shall be substituted.
STATEMENT OF OBJECTS AND REASONS
Section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Constitution of Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax framework for hearing appeals against the orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Acts. Non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts.
2. The amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 for enabling the creation of the Central Goods and Services Tax Appellate Tribunals were notified vide notification 28/2023-Central Tax dated 31st July, 2023. During the process of operationalisation of the said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunal Reforms Act, 2021 (33 of 2021).
3. Accordingly, the provisions of the Central Goods and Services Tax Act, 2017 are being aligned with the Tribunal Reforms Act, 2021, to initiate the administrative process for operationalisation of the Goods and Services Tax Appellate Tribunals at the earliest.
4. The Bill seeks to achieve the above objectives.
NIRMALA SITHARAMAN.
NEW DELHI;
The 5th December, 2023.
FINANCIAL MEMORANDUM
The provisions of the Bill do not involve any expenditure of recurring or non-recurring nature from the Consolidated Fund of India.
ANNEXURE
The Central Goods and Services Tax Act, 2017
(12 of 2017)
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110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc.
(1) A person shall not be qualified for appointment as—
* * * * *
(b) a Judicial Member, unless he—
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(ii) has, for a combined period of ten years, been a District Judge or an Additional District Judge;
* * * * *
(9) Notwithstanding anything contained in any judgment, order, or decree of any court or any law for the time being in force, the President of the Appellate Tribunal shall hold office for a term of four years from the date on which he enters upon his office, or until he attains the age of sixty-seven years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years.
(10) Notwithstanding anything contained in any judgment, order, or decree of any court or any law for the time being in force, the Judicial Member, Technical Member (Centre) or Technical Member (State) of the Appellate Tribunal shall hold office for a term of four years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years.
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LOK SABHA
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A
BILL
further to amend the Central Goods and Services Tax Act, 2017.
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(Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs)
