A Parliamentary Standing Committee has urged the Ministry of Finance to adopt a time-bound approach and proactively coordinate with state governments to ensure the full operationalisation of the Goods and Services Tax Appellate Tribunal (GSTAT) benches across the country.
In its latest Action Taken Report, the Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, expressed concern over the delayed appointments of GSTAT Members, especially Technical Members (State), which is hindering the tribunal's functionality and delaying justice in GST-related disputes.
"The committee desires that the Ministry should expedite all remaining formalities and actively pursue with states to make GSTAT benches functional without further delay," the report stated.

GSTAT: Critical for Reducing Litigation Burden
The GSTAT is a vital institutional mechanism designed to provide speedy redressal of disputes under the Goods and Services Tax law and reduce the burden on High Courts. While the Principal Bench in New Delhi has been notified, along with 31 State Benches, many of them are yet to become fully operational due to the pending appointment of members.
In May 2023, the government had appointed Justice (Retd) Sanjaya Kumar Mishra as the first President of GSTAT. Member appointments are to be made based on recommendations from search-cum-selection committees, but only a handful of states-namely Uttar Pradesh, Odisha, Gujarat, Bihar, and Maharashtra/Goa-have submitted recommendations so far.
Committee Flags Delay and Operational Challenges
The committee observed that the delay in constituting Search-cum-Selection Committees at the state level is a major bottleneck, and recommended that the Centre intensify its coordination efforts to speed up the process. It also emphasized the importance of regular recruitment to ensure the tribunal's long-term stability and operational efficiency.
"Though temporary operations have started from an interim facility, concerted efforts are needed to develop the tribunal fully and realize its intended benefits," the committee noted.
Impact on GST Ecosystem and Taxpayers
The committee warned that the persistent delay in fully operationalizing the GSTAT is adversely impacting the larger GST ecosystem, resulting in:
- Prolonged litigation for taxpayers
- Overburdened High Courts
- Denial of timely relief in tax disputes
The panel reiterated that the Ministry of Finance must act swiftly, with a clear timeline and structured plan, to complete the institutional and administrative steps required for GSTAT to function effectively at the national level.