GSTAT state benches may miss December rollout as staffing, infra lag
New Delhi, Dec 11, 2025
The rollout of GST appellate tribunal benches is likely to miss the December deadline as staffing gaps and infrastructure delays stall operations, leaving lakhs of tax disputes unresolved
The rollout of the state benches of the Goods and Services Tax Appellate Tribunal (GSTAT), the statutory body designed to resolve the indirect tax disputes, may get delayed beyond the December deadline as the necessary staff and infrastructure required for it is not yet ready, people familiar with the matter said.
The benches are meant for hearing appeals against orders passed by GST appellate authorities, and to provide taxpayers with an independent forum for justice. They function through a principal bench in New Delhi and 31 state benches across 45 locations, giving it nationwide reach.
Each state bench is required to have two judicial members appointed by the Centre, along with two technical members — one appointed by the Centre and one by the state.
While the Centre has completed appointments for its share of judicial and technical members, none of the appointed members have received their posting orders so far, sources said.
Most states are yet to appoint their technical members. “Only four states, including Uttar Pradesh and Gujarat, have so far appointed their technical members, while the remaining states are yet to make any appointments,” a government official told Business Standard.
An email sent to the finance ministry on the matter remained unanswered till the time of going to the press.
With the tribunal still not operational, nearly 600,000 tax appeals remain pending across the GST system, causing long delays for businesses and taxpayers, said sources.
In May 2024, Justice (retd) Sanjaya Kumar Mishra was appointed as the first president of GSTAT. At the 56th meeting of the GST Council in September, it was decided that the tribunal benches would be rolled out in a phased manner from October 2025, with digital filing and virtual hearings.
At the formal launch of GSTAT on September 24, Finance Minister Nirmala Sitharaman had said the deadline for filing appeals in legacy GST cases has been extended till June 30, 2026, with hearings expected to begin from December under a staggered filing process. Under this approach, cases will be admitted and listed in batches, generally on a first-in-first-out basis.
Tax experts said the continued delay in making the tribunal operational is hurting confidence in the GST dispute-resolution system. Abhishek A Rastogi, founder of Rastogi Chambers, said speedy justice is critical for the credibility of the tax regime.
“Many taxpayers have already paid large sums during investigations or made mandatory pre-deposits for appeals. They cannot be made to wait endlessly because of administrative delays,” he said.
Rastogi added that with nearly 600,000 cases pending, the government will need system-level solutions to prevent the litigation load from becoming unmanageable. He said an amnesty scheme for minor violations and long-pending cases could help reduce the burden. He also suggested that once GSTAT becomes functional, similar legal issues across states should be heard together to speed up decisions and ensure uniformity.
Work in progress
Centre has completed appointments, but members yet to receive posting orders
Most states yet to appoint technical members
Nearly 600,000 tax appeals pending across GST system
Delay in making tribunal operational hurting confidence in GST dispute-resolution system, say tax experts
[The Business Standard]
