Introduction
In a landmark move poised to transform India’s indirect tax dispute resolution system, the Central government has notified the GST Appellate Tribunal (Procedure) Rules, 2025 on 24th April 2025, paving the way for the long-awaited operationalization of the GST Appellate Tribunal (GSTAT). Notified under Section 111 of the Central Goods and Services Tax (CGST) Act, 2017, and effective from April 24, 2025, the new rules introduce a digital-first, transparent framework aimed at resolving pending GST appeals.
The absence of a functional GSTAT has forced taxpayers to seek relief from High Courts, escalating costs and delays. “These rules establish a digital-first, transparent framework to tackle over 8,100 pending GST cases, including more than 2,800 unresolved for over a year, as reported in the recent Compliance Audit of the Central Board of Indirect Taxes and Customs (CBIC). In the absence of a constituted GSTAT, genuine litigants have had to approach High Courts to seek relief from tax recoveries or coercive actions.
Taxpayers have been eagerly awaiting the Tribunal’s establishment to address unwarranted tax demands, with the government expediting appointments of judicial and technical members while the Goods and Services Tax Network (GSTN) develops the technology platform for appeal processing. Comprising of 124 rules spread across 15 chapters, the GSTAT Procedure Rules, 2025, mandate electronic filing of appeals through the GSTAT portal, ensuring standardized formats and clear timelines.
What is the GST Appellate Tribunal (GSTAT)?
The Central Goods and Service Tax Act, 2017 (CGST Act) in Section 109 mandates the constitution of a Goods and Service Tax Appellate Tribunal (GSTAT) and its Benches. GSTAT is set to become the forum of second appeal within the GST Act. It is a unified forum to establish transparency in dispute resolutions and enforce quicker action for cases.
The long-awaited GSTAT was established on 1st day of September 2023. On 15th February 2024, the Department of Revenue opened applications for the positions of Judicial members, technical members centre, and state in the principal bench and state benches of the tribunals. The GST Appellate Tribunal, established in 2023, is to consist of 31 State Benches and a Principal Bench in Delhi, with a sanctioned strength of 63 Judicial and 33 Technical Members.
The Finance Minister of India, Smt. Nirmala Sitharaman, presided over the ceremony where Justice (Retd.) Sanjaya Kumar Mishra was sworn in as the first President of the GSTAT on 06th May 2024.
The GSTAT will consist of a Principal Bench in New Delhi and State Benches across various states. Each bench is composed of a Judicial Member and two Technical Members—one each from the Centre and the concerned State. The appointment, tenure, and qualification of members are governed by Sections 109 and 110 of the CGST Act, 2017. This structure is designed to balance legal expertise with domain knowledge of taxation, ensuring informed and impartial decision-making.
Filing of appeals.
As per the Rule 18 of GSTAT Procedure Rules, 2025
♦ Mode of Filing: Appeal to the Appellate Tribunal must be filed online on the GSTAT Portal in the prescribed Form under the Rules.
♦ Contents of the Appeal:
a) Cause title must state: “In the Goods and Services Tax Appellate Tribunal” and mention the order/proceeding challenged.
b) The appeal must be in numbered paragraphs, each covering a separate fact, point, or allegation.
c) Include full name, parentage, GSTIN, party description, and address at the beginning.
d) Parties must be listed with consecutive numbers; if a party dies during proceedings, legal heirs are shown using sub-numbers.
♦ Number of Appeals:
GSTAT Appeal Filing Matrix Based on SCNs, OIOs & OIAs
| SCNs | OIO | OIA | Appeal before GSTAT |
| Single SCN | Single OIO | Single OIA | Single Appeal |
| Multiple SCNs | Multiple OIOs | Single OIA | Multiple – Separate appeal against each OIO (Irrespective of number of OIA) |
| Multiple SCNs | Single OIO | Single OIA | Single Appeal |
| Single SCNs (covering multiple parties) | Single OIO (covering multiple parties) | Separate OIA for each party | Separate appeal to be filed by respective person covered in the proceeding |
| Single SCNs (covering multiple parties) | Multiple OIOs (separate party wise) | Separate OIA for each party | Separate appeal to be filed by respective person covered in the proceeding |
Rule 38 – Daily Cause List
The Registrar shall prepare the cause list for the next working day in accordance with GSTAT CDR-01 and ensure its publication on the notice board of the Appellate Tribunal and the GSTAT Portal before the close of working hours each day.
Powers and Function
When a case is taken to the GST Appellate Tribunal, it listens to both sides – the taxpayer and the department – before making a decision. After hearing the matter, the Tribunal can:
- Agree with the earlier decision,
- Make changes to it,
- Cancel it completely, or
- Send the case back to the previous authority (like the officer who gave the decision or the appellate/revisional authority) with instructions on what to do next.
Rule 10. Inherent Powers:
The Appellate Tribunal retains inherent powers to pass orders or directions as may be necessary to secure the ends of justice or prevent abuse of its process. These powers ensure flexibility and fairness in the Tribunal’s proceedings.
Rule13. Power to Exempt:
The Appellate Tribunal has the power to relax or waive certain procedural rules if a party provides a valid reason. It can also issue necessary directions related to the procedure or practice to ensure fair and just outcomes.
Rule 14. Power to Extend Time:
The Tribunal may, at its discretion, extend any time limit prescribed by rules or set by its own orders. This extension can be granted even after the expiry of the original period, provided it serves the interest of justice and is deemed reasonable by the Tribunal.
Rule 16. Power of Adjournment:
Requests to postpone a hearing should usually be made before the concerned Bench. However, in exceptional situations, the Registrar may adjourn a matter—if directed by the Tribunal—and present it to the Tribunal in chambers.
Rule 17. Delegation powers of the president:
(1) The President of the Tribunal can delegate certain responsibilities to the Vice-President of a State Bench as needed under the rules.
(2) The President may also assign some or all duties of the Registrar to other officers such as a Joint Registrar, Deputy Registrar, Assistant Registrar, or any other suitable official.
Transition of Pending High Court Cases
One of the most significant implications of the GSTAT becoming operational is the transfer of pending appeals from High Courts. Over the past several years, in the absence of a functioning GST tribunal, High Courts have been entertaining writ petitions on various GST matters. Now, these cases will gradually be transferred to the GSTAT.
The transfer mechanism will depend on the stage of the case. If final arguments are already concluded, High Courts may proceed to deliver judgment. Otherwise, cases are expected to be transferred either suo moto by the High Court or upon an application by the party. This transition, however, may create procedural confusion and further delay unless guidelines are issued to standardize the transfer process.
Key Legal Conflicts Between GSTAT Rules and the CGST Act
| Issue | What the CGST Act Says | What the GSTAT Rules Says | Conflict /Problems |
| Scope of Appeal (Section 112 vs Rule 21(1)) | Only Appellate (u/s 107) or Revisional Orders (u/s 108) can be appealed before GSTAT. | Rule 21(1) asks for a copy of the original adjudication order, implying direct appeals from OIOs. | Misleading
drafting — could cause defective filings, registry confusion, and litigation. |
| Differing Bench Opinions (Section 109(9) vs Rule 50) | If Members differ, matter must go to a third Member for majority decision. |
Rule 50 gives President power to refer to a Larger Bench — not allowed by the Act. | Rule overrides the statute, creating jurisdictional issues and violating legislative intent. |
| Drafting Flaw in GSTAT Rule 40(2) | Rule 40(2) of the GSTAT Rules delivers a drafting disaster — a clause that override itself while being written:
“Notwithstanding anything contained in sub-rule (1) and sub-rule (2)” |
A non-obstante clause is meant to override other provisions, not the clause it’s part of. | |
Conclusion
The GST Appellate Tribunal (GSTAT) Procedure Rules, 2025, represent a substantial reform in India’s GST dispute resolution system. The rules introduce structure, clarity, and a much-needed specialized platform for handling GST-related appeals. While the intentions are commendable, practical implementation challenges—such as infrastructure gaps, procedural rigidity, and judicial consistency—must be addressed to ensure the tribunal functions efficiently and fairly.
If executed properly with periodic review and refinement, GSTAT has the potential to reduce litigation, promote taxpayer confidence, and contribute significantly to the maturing of India’s indirect tax framework.
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