Parl panel urges FinMin to expedite full enforcement of GSTAT benches

A parliamentary committee has asked the finance ministry to adopt a "time-bound" approach and "actively pursue and coordinate" with all states to make Goods and Services Tax Appellate Tribunal (GSTAT) benches fully functional across the country.

GSTAT is a crucial body for resolving Goods and Services Tax (GST) related disputes and significantly reducing the burden on higher courts. The government has notified the principal bench, to be located at New Delhi, and 31 state benches at various locations across the country.

In May last year, the government had appointed Justice (Retd) Sanjaya Kumar Mishra as the first President of the GST Appellate Tribunal (GSTAT).

The government shall appoint the members in GSTAT on the recommendations of a search-cum-selection committee.

The Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, in its report expressed 'concern' over GSTAT benches not being fully operational nationwide.

Significant delays persist in appointment of Members, particularly Technical Members (State), with recommendations received from only a few States, namely Uttar Pradesh, Orissa, Gujarat, Bihar, and Maharashtra/Goa.

"The Committee... urge the Ministry to actively pursue and coordinate with the remaining State Governments to expedite the constitution of Search-cum-Selection Committees and the forwarding of recommendations, to make benches functional without further delay," said the Action Taken Report of the Standing Committee on Finance.

Emphasising on the need for "regular recruitment for long-term stability and efficiency", the committee noted that while temporary operations have begun from an interim facility, the committee desires that concerted efforts are needed for its early development to realise GSTAT's full benefit.

It also said the persistent delays in GSTAT's full functionality adversely impacts the larger GST ecosystem, resulting in prolonged litigation, overburdening of High Courts, and denial of timely relief to taxpayers.

"The Committee, therefore, desire that the Ministry should adopt a time-bound approach to complete all remaining formalities," the report said.