GST Appellate Tribunal Procedure Rules: A Robust Dispute Resolution Mechanism

Introduction

The Goods and Services Tax (GST) regime, introduced in India in 2017, marked a significant overhaul of the country’s indirect tax system. However, the absence of a fully operational appellate forum created a critical gap in the adjudicatory framework of the dispute resolution mechanism. This led to a surge in litigation before High Courts and a growing backlog of unresolved tax disputes, undermining taxpayer confidence. To address this, the Government introduced the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023, followed by the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 (GSTAT Rules). These rules establish the procedural and operational framework for the GST Appellate Tribunal (GSTAT), a dedicated second-tier appellate body to resolve GST disputes efficiently. The powers to establish such an authority are already available under Section 109 of the CGST Act 2017.

2. This article attempts to provide a comprehensive analysis of the GSTAT Rules, highlighting their significant features, procedural advancements, and challenges. Additionally, it underscores the importance of a strong dispute resolution mechanism in settling tax disputes and restoring taxpayer confidence in the GST ecosystem. By examining the structure, procedures, and comparative advantages of the GSTAT Rules, this article evaluates the potential of GSTAT to transform tax adjudication structure in India.

Background and Need for GSTAT

3. Since the inception of GST, the lack of a dedicated appellate tribunal has forced taxpayers to approach honourable High Courts for redressal, leading to prolonged litigation and judicial overburdening. The CGST Act envisaged a two-tier appellate mechanism, with the first appeal before the Appellate Authority and the second before the GSTAT. However, delays in operationalising the GSTAT exacerbated disputes, with taxpayers facing uncertainty and financial strain. The notification of the GSTAT Rules in 2025 is therefore to be considered as a pivotal step toward addressing this systemic gap and providing much-needed relief. On July 31, 2024, vide F. No. A-50050/150/2018-CESTAT-DoR the Ministry of Finance notified the establishment of the Goods and Services Tax Appellate Tribunal (GSTAT).

Structure of the GSTAT

4. The GSTAT comprises a Principal Bench, located in New Delhi and 31 state benches, ensuring pan-India accessibility.

The Locations shown as ‘Circuit’ shall be operational in such manner as the President may order, depending upon the number of appeals filed by Appellants in the respective States/jurisdiction and additional sitting associated with the Bench shall be operated by one Judicial Member and one Technical Member after constitution.

5. Based on the rich experience reaped from the erstwhile regime in administering the tax disputes resolutions at the Tribunal levels, this is a significant expansion from the CESTAT’s structure, which had one principal bench and only eight regional benches, obviously with an objective to speed up the litigation resolution process. The Principal Bench, presided over by the President, includes one Judicial Member (State) and one Technical Member (Centre) and focuses exclusively on disputes related to the place of supply and also Anti Profiteering matters. Starting October 1, 2024, the Principal Bench of the GST Appellate Tribunal (GSTAT) has been empowered to hear and adjudicate cases related to anti-profiteering under the GST law. This authority was conferred by the Ministry of Finance through Notification No. 18/2024 – Central Tax, based on recommendations from the GST Council. The Principal Bench now handles cases involving whether registered persons have passed on the benefits of input tax credits or tax rate reductions to consumers by reducing prices accordingly.  Earlier, anti-profiteering cases were handled by the National Anti-Profiteering Authority (NAA) and subsequently by the Competition Commission of India (CCI). Due to CCI’s lack of specialized tax expertise and challenges in effective adjudication, the GST Council recommended transferring these cases to the GSTAT Principal Bench.  The Principal Bench’s jurisdiction over anti-profiteering cases is derived from Section 171(2) of the CGST Act, read with Sections 109(1) and 109(5), empowering the Tribunal to ensure compliance with anti-profiteering provisions

6. The State benches, comprising two judicial and two technical members (one each from the Centre and State), handle state-specific appeals. This balanced composition aims to ensure impartial and well-rounded adjudication, combining legal expertise with technical knowledge of GST.

GSTAT (Procedure) Rules, 2025- The mainstay

7. The GSTAT Rules, 2025, organised into fifteen chapters, Schedule of Cost and CDR (Case Document Register) forms provide a comprehensive framework for the tribunal’s operations, from appeal filing to order issuance, defining the procedural landscape of the GSTAT. It includes preliminary, Powers and Functions, Institution of appeals – Procedure, Cause list, Hearing of Appeal, Record of proceedings, Maintenance of registers, Inspection of Record, Appearance of authorised representative. Etc. The rules also prescribe various forms to be furnished as per procedural requirements, along with a detailed schedule.

8. Embracing digital solutions from the outset provides several key advantages, including enhanced trust, improved operational efficiency and better stakeholder experiences. It allows to leverage digital tools and trends to expand their reach, optimise processes, and adapt to evolving dynamics in the justice delivery mechanism. In line with this purpose, Chapter XIV of the GSTAT Rules,2025, except as may be otherwise provided by order by the President, emphasises digitalisation to enhance transparency and efficiency. A dedicated portal for the same has been created, which can be accessed at https://gstat.gov.in. All appeal applications and interlocutory applications to the Goods and Services Tax Appellate Tribunal (GSTAT) must be submitted electronically through the designated GSTAT Portal. The prescribed format is GSTAT Form-01, must be filled with due care and completeness. The GSTAT Portal, which features AI-driven tools such as e-filing, case tracking, a Distinguished Management System (DMS), and a Case Information System (CIS) incorporates a secure modern information technology. These tools aim to streamline processes, reduce clerical errors, and ensure uniformity across states. User guides further support stakeholders in navigating the portal.  Once an appeal is found to be in order, it is formally registered and assigned a unique appeal number. This number is then entered into the official Appeal Register maintained by the Tribunal. This registration signifies that the appeal has been admitted for further processing and listing before the Bench. Though it has been made compulsory to file all the Appeal Applications to GSTAT online, some amount of flexibility has also been embedded, defying rigidity. The provisions of Rule 19 allow physical filing in unspecified may be “exceptional circumstances” thereby establishing a facility for manual filing of appeals too. Clear guidelines on the circumstances, once issued, will prevent arbitrariness and maintain the digital-first vision.

9. The Honourable Supreme Court recently gave a clear push for continued use of technology in court hearings in the post-pandemic world, and many honourable High Courts across the country have adopted to do so. Tools such as hybrid hearings can go a long way in ensuring that all the parties – the judges, lawyers and litigants – attend matters without having to be physically present in the courtroom. The GSTAT Rules permit hybrid or electronic hearings, enabling remote participation. This enhances accessibility, reduces costs, and accommodates geographically distant parties. All proceedings are conducted and recorded through the GSTAT Portal, ensuring transparency and accountability.

10. There are Rules on the manner of listing of cases and also prioritising urgent matters, with appeals filed before 12:00 noon typically listed for the next working day. In exceptional cases, same-day listing is possible with the Tribunal’s or the President’s approval. The cause list follows a clear order of priority in pronouncement of orders, classification, admission, directions, part-heard cases, and numerically ordered cases. The GSTAT Rules 2025, have introduced strict timelines to expedite dispute resolution. The Respondents must file replies within one month of receiving an appeal, and the tribunal is required to issue final orders within one month of concluding hearings. These deadlines aim to prevent hurries & delays and ensure the optimum time to defend oneself as well as timely delivery of justice, as it is well known in jurisprudence that Justice Delayed is Justice denied, while Justice hurried is Justice buried. To uphold impartiality, Rule 106 allows the President or members to recuse themselves from cases involving personal or familial connections or prior representation of parties. Rule 76 allows the tribunal to empanel special authorised representatives or experts for complex cases, enhancing adjudication quality. This provision strengthens the tribunal’s credibility by addressing potential conflicts of interest. This structured approach enhances transparency, efficiency and predictability.

11. There are certain spheres which require enhanced clarity, especially in the areas of Cross Examination, Conflict of Opinions, Filing of Rejoinders, Restriction on Appearance, etc., and it is believed that it will emerge with the metamorphosis of the functioning safeguards and ethical integrity, will be ensured.

12. A robust dispute resolution mechanism, as embodied by the GSTAT, is critical for addressing the inadequacies that plagued GST adjudication. By providing a specialised forum for appeals, the GSTAT reduces the burden on High Courts in dealing with GST disputes. The dedicated timelines, digital infrastructure, and structured procedures of the GSTAT Rules ensure faster resolution, minimising delays and clearing backlogs. This efficiency is vital for taxpayers facing financial uncertainty due to prolonged litigation. The GSTAT’s balanced bench composition, recusal provisions, and transparent processes (e.g., digital filings and recorded hearings) promote fairness in adjudication. The ability to inspect records, summon documents, and empanel domain experts ensures that decisions are well-informed and equitable. Transparent procedures build trust in the system, encouraging compliance and reducing adversarial disputes.

Before bidding adieu……

13. It is said that “the Time and the World do not stand still, for change is the law of life and those who look only to the past or the present are certain to miss the future.” The GSTAT Rules, 2025, represent a transformative step toward operationalising a dedicated appellate tribunal for GST disputes. By introducing a digital-first approach, strict timelines, and robust procedural safeguards, the Rules address longstanding gaps in the GST adjudicatory framework. When compared to the CESTAT Rules, the GSTAT Rules offer greater clarity, transparency, and efficiency, promising a more effective dispute resolution process. By resolving disputes promptly and equitably, the GSTAT can strengthen the GST ecosystem, support economic growth, and foster trust in India’s tax system. Through legislative refinements and stakeholder collaboration, the GSTAT has the potential to become a cornerstone of tax justice system in India, delivering on its promise of timely and effective resolution.

14. In fine, Taxpayer confidence is essential for the success of any tax regime, which GSTAT will certainly provide.

Jai Hind !!!!