GST Appellate Tribunal
Part of: GS Prelims and GS- III – Economy
Context The Supreme Court has warned that the government has no option but to constitute the Goods and Services Tax (GST) Appellate Tribunal.
- The GST tribunal has not been constituted even four years after the central GST law was passed in 2016.
- Section 109 of the GST Act mandates the constitution of the Tribunal
What is GST Appellate Tribunal?
- The GST Appellate Tribunal (GSTAT) is the second appeal forum under GST for any dissatisfactory order passed by the First Appellate Authorities.
- The National Appellate Tribunal is also the first common forum to resolve disputes between the centre and the states.
- Being a common forum, it is the duty of the GSTAT to ensure uniformity in the redressal of disputes arising under GST.
- It holds the same powers as the court and is deemed Civil Court for trying a case.
Constitution of the GST Appellate Tribunal
- National Bench: The National Appellate Tribunal is situated in New Delhi, constitutes a National President (Head) along with 2 Technical Members (1 from Centre and State each)
- Regional Benches: On the recommendations of the GST Council, the government can constitute (by notification) Regional Benches, as required.
- As of now, there are 3 Regional Benches (situated in Mumbai, Kolkata and Hyderabad) in India.
- State Bench and Area Bench
What is the Goods and Services Tax (GST)?
- The GST is a value-added tax levied on most goods and services sold for domestic consumption.
- It was launched on 1st July 2017.
- It subsumed almost all domestic indirect taxes under one head.
- The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.
- GST is levied at four rates – 5%, 12%, 18% and 28%.
- The GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST).
- Import of goods or services would be treated as inter-state supplies and would be subject to Integrated Goods & Services Tax (IGST) in addition to the applicable customs duties.