GSTN’s Digitization of Dispute Resolution Process

The Goods and Services Tax Network (GSTN) is set to fully digitize the entire dispute resolution process via appeal to the GST Appellate Tribunal (GSTAT), a senior official informed FE. A dedicated portal is expected to be operational before all benches of the tribunal become fully functional.

Earlier reports by FE indicated that the government aims to activate all GSTAT benches by January 2025 to address the substantial backlog of pending GST-related disputes at the appellate level. The principal bench, located in New Delhi, is anticipated to commence operations from July-August.

According to a response from the finance ministry to the Parliament, there were 14,227 appeals against disputed tax demands raised by Central GST authorities as of June 2023.

On May 6, Finance Minister Nirmala Sitharaman administered the oath to Sanjaya Kumar Mishra, former chief justice of Jharkhand High Court, as the President of GSTAT.

GSTAT, established under the Central GST Act, 2017, serves as the appellate authority to hear appeals against orders of the first appellate authority. It comprises a Principal Bench in New Delhi and multiple state benches, with 31 state benches notified across the country as per GST Council approval.

Tax experts anticipate that the digital portal will streamline appeals through electronic filing, reducing paperwork and administrative burden. This move is expected to expedite the overall litigation process, leading to quicker resolution of appeals and revenue liquidation.

Experts highlight benefits for taxpayers in terms of tracking appeals and accessing past orders, ensuring transparency and efficiency. They also expect GSTAT members to make faster and more informed decisions with quick access to precedents.

While acknowledging the ambitious vision, experts caution that full implementation may require time. They suggest increasing GSTAT benches and appointing additional qualified members to handle the backlog. Implementing strict timelines for hearing and resolving appeals, along with leveraging artificial intelligence tools, could further expedite the process.