Union Finance Minister Nirmala Sitharaman launched the Goods and Services Tax Appellate Tribunal (GSTAT) on Wednesday, describing it as a milestone in making GST dispute resolution fair, fast, transparent and accessible for taxpayers across India.
The GSTAT, established under GST law, serves as the appellate authority for hearing appeals against orders passed by the first appellate tribunal. Although its benches were notified in 2019, legal formalities delayed the appointment of its President until 2024. The GST Council, during its 56th meeting on September 3, 2025, decided that the GSTAT would be operational for accepting appeals before the end of September and commence hearings by December 2025.
"Earlier, States often differed in interpreting product classifications or definitions, leading to complications and frequent clarifications by the GST Council," FM Sitharaman said. "This resulted in unnecessary locking up of business capital, especially impacting MSMEs. With GSTAT, we open a new era of predictable, specialised jurisprudence."
The Finance Minister highlighted that the GSTAT will serve as a single, independent forum where all second-level appeals, whether from the Centre or States, will converge. "Ease of living for taxpayers extends beyond filing and refunds; it includes fair and efficient dispute resolution. GSTAT is a natural extension of this reform arc and a vital forum for justice," she said.
FM Sitharaman emphasised that tribunal decisions should be jargon-free, in simple language, with time standards for listing, hearings, and pronouncements to ensure transparency and efficiency.
Sanjaya Kumar Mishra, President of the GSTAT, noted the tribunal's importance given the complexity of GST law. "The GST regime, launched in July 2017, is a monumental reform. Differences in interpretations were inevitable, but GSTAT will now provide clarity and consistency," he said.
The GSTAT is set to become the largest tribunal in India, with over 116 members, 32 benches, and 45 locations, starting with a pendency of more than 4 lakh cases. Mr. Mishra added that cases affecting systemic certainty will be prioritised. Around 90% of cases will be single-bench matters, generally involving less than Rs 50 lakh in tax burden and no complicated legal questions.
The launch of GSTAT marks a significant step in improving the ease of doing business in India, ensuring that GST disputes are resolved efficiently while safeguarding taxpayer interests.
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