GSTAT eases appeal scrutiny norms in initial phase to help taxpayers

In a relief for taxpayers, the GST Appellate Tribunal has asked registries to take a lenient view on procedural defects in appeals during the initial six months

In a significant relief for taxpayers facing teething issues with the newly operationalised Goods and Services Tax Appellate Tribunal (GSTAT), which hears appeals against orders of the first appellate authority under GST, its Principal Bench has issued an office order directing registries across all benches to adopt a lenient approach while scrutinising appeal documents during the initial phase.

 

“...the registry of each bench shall keep a lenient view during scrutiny of the appeal documents and raise defects of substance only rather than defects of form, that is, defects not affecting the merit of the case shall not be raised, for an initial period of six months from the date of issuance of this order,” the order dated January 20 said.

 

The order further clarifies that documents generated digitally through the GSTN system need not be certified, while scanned copies of physical documents attached to appeals must be signed.

 

Addressing an industry interaction last week, GSTAT President Justice Sanjaya Kumar Mishra said nearly 5.82 lakh cases have already been decided at the first appellate stage, and around 2 lakh appeals are expected to be filed before the tribunal by June 30, 2026. He urged taxpayers and professionals not to wait until the last moment to file appeals and said minor technical or human errors would not lead to appeals being treated as defective.

 

According to Vivek Jalan, partner at Tax Connect Advisory Services LLP, all appeals before GSTAT can only be filed online on the GSTAT portal, as envisaged in Rule 115 of the GSTAT Rules, 2025. “We have tried to capture certain technical and other challenges in GSTAT filings from our experience over the last few months and have also presented these before the President with our recommendations.”

 

“Further, various decisions and legal calls have to be taken by taxpayers and professionals while filing appeals — for instance, if the order-in-appeal has place of supply as one of the issues, the appeal would lie before the Principal Bench in New Delhi and not the state bench. Taxpayers should avoid mistakes in such substantive issues while filing and should start filing appeals soon so that correct decisions can be taken,” Jalan added.