GST Appellate Tribunal To Adjudicate Anti-Profiteering Cases, May End Long-Drawn Dispute
The Goods and Services Tax Appellate Tribunal (GSTAT) will take over adjudication of pending anti-profiteering cases, paving the way to end a long-drawn dispute. The tribunal is expected to begin hearing in GST matters by December. Several major consumer goods companies, including Hindustan Unilever, Jubilant FoodWorks, Patanjali, Reckitt Benckiser, and Procter & Gamble, have faced action under erstwhile anti-profiteering framework.
Introduced in 2017 through the National Anti-Profiteering Authority (NAA), the provisions mandated that suppliers pass on the benefit of GST rate cuts or input tax credits to consumers through commensurate price reductions. The NAA, subsumed into the Competition Commission of India (CCI) in December 2022, had penalised more than 100 companies, many of which challenged the provisions in court.
Since then, the CCI has disposed of just 27 cases, while about 140 remain pending. Another 184 are before various High Courts, and the Supreme Court is examining the matter after the High Court upheld the provisions’ constitutional validity.
In mid-2024, the CCI stepped back, saying anti-profiteering was not its core function. With a sunset clause ending the filing of fresh complaints from April 2025, the government has said the GST transition is now largely stabilised, making it an appropriate time to reassess the provision.
The GSTAT will operate with 116 members across 32 benches in 45 locations. It is expected to streamline dispute resolution, ensure consistency in rulings, reduce litigation, and ease working capital pressures—particularly for MSMEs and exporters.
As part of a staggered rollout, older disputes will be prioritised for filing in the initial phase. In addition, the tribunal will assume the role of the Authority for Advance Rulings (AAR), becoming a single forum for all GST-related disputes. “This makes GSTAT not just a tribunal but a one-stop comprehensive forum for GST disputes, both before and after initiation of proceedings,” Finance Minister Nirmala Sitharaman said during the official launch of tribunal on Wednesday.
As part of a staggered rollout, older disputes will be prioritised for filing in the initial phase. In addition, the tribunal will assume the role of the Authority for Advance Rulings (AAR), becoming a single forum for all GST-related disputes.
“This makes GSTAT not just a tribunal but a one-stop comprehensive forum for GST disputes, both before and after initiation of proceedings,” Finance Minister Nirmala Sitharaman said during the official launch of tribunal on Wednesday.
