GST Council

Context: Recently, the approval of the GST Appellate Tribunal was announced by the Goods and Services Tax (GST) Council.

About GST Council:

• The 101st Amendment Act of 2016 (122nd Amendment Bill), paved the way for the implementation of GST.
• The GST Council is a joint forum of the Centre and the states under Article 279-A of the constitution.
• Article 279-A. gives the President the authority to appoint a GST Council by executive order.
• The members of the Council include the Union Finance Minister (chairperson), and the Union Minister of State (Finance) from various states.
• As per Article 279, it is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
• It also decides on various rate slabs of GST.

About GST Appellate Tribunal:

• The GST Appellate Tribunal (GSTAT) or simply the Appellate Tribunal is the second appeal forum under GST for any dissatisfactory order passed by the First Appellate Authorities, an application for revision of the same can be raised to the National Appellate Tribunal.
• The National Appellate Tribunal is also the first common forum to resolve disputes between the center and the states.
• Being a common forum, it is the duty of the GST Appellate Tribunal to ensure uniformity in the redressal of disputes arising under GST.

Powers of the Appellate Tribunal under GST:

• As per the Code of Civil Procedure, 1908, the GST Appellate Tribunal holds the same powers as the court and is deemed Civil Court for trying a case.
• The Appellate Tribunal has been granted the powers to hear appeals and to pass orders and directions, including those for the recovery of amounts due, for the enforcement of its orders, and for the rectification of mistakes.
• The Tribunal also has the power to impose penalties, revoke or cancel registrations, and take such other measures as may be necessary to ensure compliance with the GST laws.

Jurisdiction of the Appellate Tribunal under GST:

• The jurisdiction of the Appellate Tribunal extends to all cases where an appeal has been filed against an order, decision, or direction of a lower authority under the GST laws.
• The Tribunal has the power to hear and resolve disputes related to the assessment of taxes, determination of liability, imposition of penalties, and other matters related to the implementation and interpretation of the GST laws.

Constitution of the GST Appellate Tribunal

The GSTAT has the following structure:

• National Bench: The National Appellate Tribunal is situated in New Delhi, and constitutes a National President (Head) along with 2 Technical Members (1 from the Centre and one State each).
• Regional Benches: On the recommendations of the GST Council, the government can constitute (by notification) an ‘N’ number of Regional Benches, as required. As of now, there are 3 Regional Benches (situated in Mumbai, Kolkata, and Hyderabad) in India, wherein each bench constitutes a Judicial Member and 2 Technical Members(for Centre and State each).
• State Bench and Area Bench: The Government, on the recommendations of the GST council, has notified a number of State Benches.

Source: News on Air

Previous Year Questions

Q.1) Which of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India? (2022)

1. An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
2. A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
3. An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
4. A foreign company transfers shares and such shares derive their substantial value from assets located in India

 Q.2) What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (2017)

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3