GST Appellate Tribunal must address litigation delays: FM Sitharaman

NEW DELHI: Finance minister Nirmala Sitharaman on Wednesday said that outcome of GST Appellate Tribunal (GSTAT) must be straightforward with reduced legal frictions, greater simplicity, and should be proactively addressing delays in litigations to ensure better cash flow.
“Until now, taxpayers had to navigate different product clarifications on various state interpretations, leading to delays and locked-up capital, especially for MSMEs. With GSTAT, disputes will converge at one forum. This is one nation, one tax, and now one adjudicating body,” FM said while launching the tribunal, which she described as a milestone reform.

The tribunal, with principal bench in the Capital and 31 state benches across 45 locations, will hear appeals against orders from the First Appellate Authority (FAA) of GST. It is also tasked with acting as the National Appellate Authority for Advance Ruling from April 2026, to bring consistency in rulings across states.
The minister said GSTAT will focus on clear, jargon free rulings, digital filings, virtual hearings, and strict timelines. A digital portal for e-courts has been rolled out, allowing taxpayers and advisors to file and track appeals online. Hearings are expected to begin by Dec and the limitation period for pending appeals has been extended up to June 30, 2026.
The finance minister also stated that the move comes after years of delay. Although benches were notified in 2019, legal hurdles stalled progress until the appointment of Justice Sanjay Mishra as GSTAT President in 2024. The Supreme Court has overseen the selection of judicial and technical members to ensure transparency.

“It will be a pillar of trust for businesses and a catalyst for India’s growth,” Sitharaman said. She also spoke on the increase in domestic consumption after the GST rate cut, stating, “Every early report in the media pointed to the unprecedented sales and bookings in the first two days of this ‘Bachat Utsav’.”