The Rajya Sabha approved a significant bill on Wednesday, further paving the way for the establishment of Goods and Services Tax (GST) Appellate Tribunals (GSTAT).
The Central Goods and Services Tax (Second Amendment) Bill of 2023, returned by the House, introduces crucial changes to the appointment terms for tribunal members, imposing a minimum age requirement of 50 for both members and presidents of the tribunal.
Despite the absence of opposition members, who were suspended in recent days, Finance Minister Nirmala Sitharaman moved the bill for discussion. Having already received approval from the Lok Sabha on Tuesday, the bill focuses on amending the Central Goods and Services Tax Act, 2017.
The proposed amendments specifically target the refinement of the existing structure of the Central Goods and Services Tax (CGST) Act, 2017, addressing the levy and collection of CGST on intra-state goods and services transactions.
With 28 tribunals currently in the process of being established, the bill aims to diversify the pool of eligible candidates for judicial appointments to these tribunals. It introduces a provision allowing advocates with a minimum of 10 years of experience, particularly in matters related to indirect taxation, to serve as judicial members.
Emphasizing the urgency for these amendments, the bill highlights that the non-constitution of GSTAT deprives taxpayers of a second appellate remedy. Consequently, taxpayers have been compelled to seek relief directly from the High Court, placing an undue burden on them. The bill seeks to streamline the process and enhance the efficiency of the GST appellate system.
In summary, the approved bill signifies a pivotal step toward the establishment of GST Appellate Tribunals, addressing key aspects of tribunal member appointments and emphasizing the urgency for a streamlined appellate system.
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