The Goods and Services Tax Appellate Tribunal (GSTAT) is set to take over the adjudication of pending anti-profiteering cases, offering relief to companies and aiming to end a long-standing dispute in the GST framework. The tribunal is expected to start hearing GST matters by December 2025.
Major consumer goods companies, including Hindustan Unilever, Jubilant FoodWorks, Patanjali, Reckitt Benckiser and Procter & Gamble, have faced scrutiny under the erstwhile anti-profiteering provisions. Introduced in 2017 through the National Anti-Profiteering Authority (NAA), the rules required suppliers to pass on GST rate reductions or input tax credits (ITC) to consumers via commensurate price cuts.
After the NAA was subsumed into the Competition Commission of India (CCI) in December 2022, over 100 companies were penalised, many of whom challenged the provisions in court. Since then, the CCI has resolved only 27 cases, leaving approximately 140 cases pending, while another 184 cases are pending before various High Courts. The Supreme Court is currently examining the constitutional validity of the provisions.
In mid-2024, the CCI stepped back from anti-profiteering cases, stating it was not its core function. With a sunset clause ending the filing of fresh complaints from April 2025, the government said the GST transition has largely stabilised, making it an opportune time to reassess the provisions.
The GSTAT will function with 116 members across 32 benches in 45 locations nationwide. It aims to streamline dispute resolution, ensure consistency in rulings, reduce litigation, and ease working capital pressures, especially for MSMEs and exporters. Older disputes will be prioritised during the initial phase of the tribunal's operations.
In addition to handling anti-profiteering cases, the GSTAT will also assume the role of the Authority for Advance Rulings (AAR), creating a single, comprehensive forum for all GST-related disputes.
"This makes GSTAT not just a tribunal but a one-stop comprehensive forum for GST disputes, both before and after initiation of proceedings," Finance Minister Nirmala Sitharaman said during the official launch on Wednesday.
Currently, around 4.83 lakh cases are pending at the appeal level and are expected to be transferred to the GSTAT once operational. Appeals can be filed online via the GSTAT portal. The finance minister also announced that the deadline for filing appeals has been extended until June 30, 2026, urging trade bodies and associations to utilise the facility.
CAclubindia
