Seven years on, over 700 GST appeals still pending in Gujarat
Hundreds of appeals filed under the Goods and Services Tax (GST) regime in Gujarat have been languishing for as long as seven years, with no hearings conducted, severely impacting traders’ ability to do business.
According to sources in the State Goods and Services Tax (SGST) department, more than 700 to 1,000 appeals — primarily involving rejected GST registration applications — remain unheard. Without valid registration, traders cannot operate legally, cutting off both their income and the state’s revenue stream.
In addition, another 1,500 appeals related to tax recovery, penalties, and administrative delays are also awaiting resolution. Most of these cases are pending in Ahmedabad, the state’s commercial hub.
No tribunal, no hearings
Senior SGST officials have cited the absence of a GST Tribunal as the primary reason for the backlog. Although the central government framed tribunal rules two months ago—nearly eight years after GST was rolled out—no judges have been appointed yet.
Deputy commissioners, including Chief Commissioner Rajiv Topno, Special Commissioner Bharti, and HC Herma, have stated that until the tribunal is constituted, appeal hearings cannot be conducted.
Heavy penalties, frozen funds
The delays have also hit traders whose goods were seized under Sections 129 and 130 of the SGST Act. Under these provisions, steep penalties are levied for violations such as incomplete documentation during transport.
Section 129: Traders must pay a 100% penalty. For instance, if goods worth Rs. 100 incur 18% tax, they must pay Rs. 36 (tax + penalty) to get them released.
