GSTAT: Relaxing retirement age, eligibility criteria of members to bring efficiency, say tax experts
Bigger bench strength to help reduce pendency of cases, but the government should go for recruitment of members on war footing, they say. Tax experts have welcomed the government’s decision to raise the retirement age and relax the eligibility criteria of the members of the much awaited Goods and Services Tax Appellate Tribunal (GSTAT). On December 20, the parliament passed the Central Goods and Services Tax (Second Amendment) Bill, 2023, making way for the establishment of the GSTAT. The bill raises the cap on age for the president and members of the GSTAT to 70 years and 67 years, respectively. Currently, the age limit for the president is 67 years and for members is 65 years. The bill also seeks to align the provisions of the Central GST Act with the Tribunal Reforms Act, 2021.
As per the bill, an advocate with 10 years of 'substantial experience' in litigation in matters relating to indirect taxes in an appellate tribunal would be eligible to be appointed as a judicial member of the GSTAT. “This is certainly a positive step by the central government as lawyers with experience of 10 years and more in the field of indirect taxation can certainly be an asset in the justice delivery system and enhanced retirement age gives ample time to the members (both judicial & technical) to adjust to the environment and be better equipped to handle the complex litigation,” said Rupender Sinhmar, partner at law firm BSM legal and a central government counsel.
According to Sinhmar, the government can now consider appointing retired judges and members of erstwhile regime (CESTAT members) and retired IRS officers with ample experience in both field formation and adjudication/appellate authorities Charanya Lakshmikumaran, Partner at Lakshmikumaran and Sridharan Attorneys, noted that this move would enable a large pool of qualified people to join the GSTAT which shall ensure effective disposal of matters.
GSTAT to have more strength than CESTAT. The GSTAT is expected to have a total of 31 benches across India, a stark departure from the government’s policy on its predecessor Customs Excise Service Tax Appellate Tribunal (CESTAT), which has a total of nine benches across the country. With over 80,000 pending cases as of March 2023, CESTAT has frequently been criticised for the slower disposal of cases and large pendency.
Chandrashekara Bharti Venkatraman, a central government counsel, said, “In a huge country like India, expansion and technology might address the concern of pendency. With 31 benches now adjudicating Disputes, most likely with VC facilities, the aspect of pendency might reduce.”
While the tribunal, which is expected to be established close to 7 years after the GST law came into force, is bound to see a large number of cases in the near future, it is likely to reduce in the long run as the tribunal starts clarifying the law. Not notifying the GST tribunals led to a flurry of litigations in high courts. According to a parliamentary response from March 2023, the ministry is fighting over 1.5 lakh cases across India.
