GSTAT rollout from Oct to ease GST litigation and unlock business capital
New Delhi, Sep 25, 2025
The GST Appellate Tribunal will begin phased rollout in October 2025 with digital filing, faster appeals, and backlog clearance to ease GST litigation and free up capital
When the goods and services tax (GST) was launched in 2017, lawmakers anticipated disputes between taxpayers and the tax department due to interpretational issues in the new system. To address this, the GST Act provided for a three-tier appeal structure: the first appeal before the Appellate Authority, the second before the GST Appellate Tribunal (GSTAT), and further appeals before the High Court and Supreme Court. While the first and third layers functioned, GSTAT—though envisaged in law—remained non-operational for eight years owing to legal challenges over appointments and centre-state differences.
The original law envisaged GSTAT benches with one judicial member and two technical members from the tax departments, with appointments controlled by the government. Lawyers and professional bodies challenged this framework, arguing it gave excessive power to the executive and diluted judicial independence.
“Courts made it clear that for a tribunal to be truly independent, judicial members must have a dominant role. Because appointments and service conditions were never finalised, GSTAT could not start. Taxpayers had no forum to resolve disputes, and High Courts were overloaded with cases,” said Bimal Jain, founder of A2Z Taxcorp LLP.
A Group of Ministers formed in the 47th Council meeting recommended that GSTAT benches be led by judicial members to ensure independence, with technical members from the Centre and states playing a supportive role. Under this model, the Principal Bench in New Delhi will have a President, one Judicial Member, one Technical Member from the Centre, and one Technical Member from a state. Each State Bench will have two Judicial Members, one Technical Member from the Centre, and one from the state. Matters relating to place of supply will be heard exclusively by the Principal Bench.
Following these reforms, 31 State Benches were notified in September 2023. Appointments began in February 2024, and in May 2024 Justice (Retd.) Sanjaya Kumar Mishra was appointed as GSTAT’s first President. Meanwhile, guidelines for recovery proceedings were issued to ensure continuity until GSTAT became functional.
Operationalising GSTAT
The GSTAT (Procedure) Rules, 2025, notified on April 24, provided a detailed framework across 124 rules and 15 chapters. The 56th GST Council meeting in August decided on a phased rollout from October 2025, with digital filing and virtual hearings on the GSTAT portal. Priority will be given to older pending appeals.
“For businesses, this closes a long-standing gap in India’s GST framework. Clear procedures on filing, timelines, and hearings promise faster resolution of disputes, easing the burden on High Courts and cutting years of uncertainty,” said Manoj Mishra, partner, Grant Thornton Bharat.
GSTAT Portal: Digitising tax dispute resolution
The new GSTAT Portal will serve as the single interface for taxpayers, consultants and officers, similar to GSTN for compliance. Features include e-filing, e-payment of fees, automated cause lists, personal hearing notices via email/SMS, and integrated virtual hearings.
“This will significantly reduce delays, enhance efficiency, and ease compliance burdens nationwide,” Jain added.
Clearing the backlog
The backlog of GST cases in High Courts has tied up capital and resources for years. With tribunals operational, businesses now have a clear path for timely resolution.
“The onus is on businesses to proactively review pending cases and prepare appeals before the March 31, 2026 deadline. This is a crucial opportunity to clear backlogs and avoid time-barred appeals. Unlocking capital and providing certainty will reinforce India’s ease of doing business credentials,” said Saurabh Agarwal, tax partner, EY India.
In conclusion, the GSTAT will provide a specialised, transparent and time-bound forum for appeals, boosting taxpayer confidence, improving compliance behaviour and completing India’s GST framework.
[The Business Standard]
