Get insights into the amended provisions related to the GST Tribunal (GSTAT). The Finance Bill 2023, passed by Lok Sabha on 24.03.2023, introduces changes in Section 109 of the CGST Act, 2017. Learn about the constitution of Tribunal Benches, their composition, jurisdiction, and powers. Highlights include the establishment of Principal and State Benches, their composition, and the distribution of business. Understand the jurisdiction of benches, the role of single and double benches, and the power to transfer technical members.
The Central Govt has amended Section 109 of CGST Act, 2017 through Finance Bill 2023 passed by Lok Sabha on 24.03.2023. With the hope that this bill will also be passed in Rajya Sabha without any changes, I have highlighted that the latest provision under section 109 which provides for constitution of Tribunal Benches, Bench Composition, Jurisdiction and Powers.
1. Principal Bench: A Principal Bench shall be in New Delhi
2. State Benches: of State Benches shall be established as per request of the State and the recommendations of the GST Council.
3. Composition of Principal Bench- Principal Bench shall consist of:
√ The President,
√ 1-Judicial Member.
√ 1-Technical Member (Centre)
√ 1-Technical Member (State)
4. Composition of State Bench- State Bench shall consist of 4 members:
√ 2-Judicial Member
√ 1-Technical Member (Centre)
√ 1-Technical Member (State)
5. Vice-President: The Vice President shall be senior most judicial member within State Benches shall act as Vice President only for the purpose of exercising powers as prescribed by the president.
6. Jurisdiction of Bench: Only Principal Bench shall hear the cases involving the issue of place of supply.
7. Jurisdiction of Judges (Members) under both Principal Bench and State Benches:
- Single member:
√ Demand in appealed order up to Rs. 50 Lakh
√ Related to Tax, ITC, Fine. Fee or Penalty only
√ Does not involve Question of Law
- One Judicial and One Technical member (DB):
√ Demand in appealed order exceed Rs. 50 Lakh
√ Related to Tax, ITC, Fine. Fee or Penalty etc.
√ Involve Question of Law
√ Cases involving issue of place of supply-only by Principal Bench
8. In case of difference of opinion between the judges, the President shall refer the case:
Case of State Bench– Shall refer to another member of same State Bench or if no such State bench to a member of another State Bench
Case of Principal Bench-Shall refer to another member of Principal Bench or if no such member to a member of any State Bench
Note: Case be decided on majority basis including members who heard case previously.
9. Power to transfer a technical member: The Central Govt can transfer a technical member in a State Bench to any Bench within the same State in which he was first appointed.
10. Validation of acts or proceedings: GSTAT act or proceedings shall not be invalidated due to any vacancy or defect in constitution of GSTAT.
11. GSTAT business distribution: The President shall distribute the GSTAT business between the Benches or transfer from one Bench to another Bench.
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By CA Gaurav Agrawal FCA, LLB – Practicing Chartered Accountant
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