GST Council Expected to Give Approval to Tribunal Blueprint in the Current Month

The long-awaited establishment of the GST Appellate Tribunal, aimed at managing tax disputes and enhancing resolution processes, is anticipated to be announced during the upcoming meeting of the Goods and Services Tax (GST) Council, scheduled to take place in either the third or fourth week of June.

During the GST Council meeting, the final operational plan for the tribunal is expected to be presented for approval. A senior government official stated that the tribunal will have jurisdiction at both the federal and state levels. It is projected that the tribunal will become operational by November, according to the same official.

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The groundwork for establishing the GST Appellate Tribunal was laid by amending the GST statute during the budget session. As per the official, the final guidelines will soon be published, and necessary amendments to state legislation will be made accordingly.

Another official mentioned that the process involves the establishment of Benches in each state, along with the creation of a national appellate tribunal.

Following extensive discussions and consultations, the GST Council made the decision to present a draft bill to the tribunal during its meeting on February 18.

According to the legislation, the tribunal will consist of a "Principal Bench" located in New Delhi, comprising a president, a judicial member, a technical member representing the state, and a technical member representing the central authority.

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Additionally, State Benches will be established based on the population of the respective states. States with populations below 20 million will have one Bench, while states with populations ranging from 20 to 50 million will have the option of having two Benches.

The national appellate bench of the GST Tribunal took the decision to handle all the disputes which are related to the "place of supply" between tax assessors & assessees. However, it will not entertain appeals regarding conflicting decisions issued by state appellate tribunals.

After considering the tribunal report, which had been submitted by a group of state ministers, the GST Council approved it with certain adjustments. The decision was made to forward the revised GST bill to the states for their input and feedback. At present, if taxpayers are dissatisfied with a tax authority's ruling, they are required to file an appeal in the high court.

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 However, due to the absence of a specialized bench in the high courts to specifically handle GST-related matters, the resolution process tends to be lengthy. Furthermore, the GST Council is deliberating on the possibility of implementing taxes on activities such as racing, casinos, and online gaming. A decision regarding this matter will be made by the council.

The recent ruling by the Karnataka High Court holds significance in light of the invalidated GST notice amounting to Rs. 21,000 crores that was issued to an online gaming company named Gameskraft.

A group of state ministers, tasked with examining the taxation issue, has reached a decision to impose a 28 percent GST on online gambling. There is an ongoing debate about whether this tax should be imposed exclusively on the fees collected by the gambling platform or on the overall amount involved, which encompasses the wagers made by the participants.

The panel has decided to present all proposals to the GST Council for a final decision in December 2022. However, as of now, the GST Council has not yet discussed this matter. Sources indicate that the stakeholders involved have not yet reached a conclusive agreement, indicating that the issue may not be resolved during the upcoming conference.

Also, Read: "ITAT: Penalty Under Section 271(1)(c) Cannot be Imposed".

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