Sources state that the Government expects the Appellate Tribunals to be functional by April 2024. It is acknowledged by the government and business community that the establishment of these Appellate Tribunals will result in a decrease in the volume of cases that the country’s High Courts have to hear.

The government notified the creation of GST Appellate Tribunals on October 27, 2023.

The industry is expected to contest unfavorable GST orders in a sizeable number, according to additional sources. However, the business community has requested that the Government consider reducing the amount of the pre-appeal deposit.

Before submitting an appeal, GST assessors must pay a pre-appeal deposit equal to 30% of the GST demand. The pre-GST cap of ₹25 crore has been raised to ₹50 crore for the maximum pre-appeal deposit in high-value CGST cases.

In the representation, many industries have mentioned that the high pre-appeal deposit amount will hurt the working capital of many firms.

In a same vein, the highest pre-appeal deposit in high-value IGST cases has been raised to ₹100 crore. In the first phase, the government plans to establish 32 benches of GST Appellate Tribunals.

The 32 benches of the GST Appellate Tribunal will consist of one national bench and thirty-one state benches. Larger states will likely have two benches, while smaller states are likely to have one. According to sources, the government intends to increase the number of state-level GST Appellate Tribunals to 62 in the second phase. Experts assert that the tribunals were highly anticipated and desperately needed.

The absence of a GST Appellate Tribunal, which continued long after the GST statute was put into effect, was one glaring flaw in the GST administration. The Tribunal has been established by the administration gradually.

The locations of the benches, which will be dispersed among 31 states, were announced on September 14. As of right now, the President’s nomination, terms of office, and member rules are described in a notice published by the government on October 25. The hiring and selection process can now begin, as this is a significant step in the right direction. As soon as the process is complete, the tribunals ought to start operating, according to Najib Shah, the former CBIC chairman.

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