25 March 2023: GST Appellate Tribunal may be headed by a former SC Judge

What is news? 

  • The Goods and Services Tax (GST) appellate tribunal is likely to be headed by a former supreme court judge or a former Chief Justice of a High court
  • Its framework may permit the resolution of disputes involving dues or fines of less than rupees 50 lahks by a single member bench;
  • Amendments to the GST laws to enable the tribunal’s constitution are expected to be introduced in the Lok Sabha.

What’s the take on this matter under the GST Council meeting? 

  • The recommendation includes compliance and tracking measures to plug leakages and evasions permitting exports of such commodities only against the letter of undertaking with a consequential refund of the accumulated input tax credit as well as changing the composition cess levied on such commodities from ad- valorem to specific tax based level to boost the first stage collection of the revenue has not been prescribed for the sector.
  • The council also reduced the GST on Rab to 5% if it is sold in a pre-packaged and labelled form and to Nil In the loose form the GST on pencil sharpeners will also be reduced to 12%. Both these items are currently taxed at 18%

What’s the prospect?

  • There will be one principal bench of the Appellate Tribunal in New Delhi and several State benches also;
  • Tax experts also said the delay in setting up the Appellate Tribunal has led to a pileup of unresolved legal matters over the tax.
  • The establishment of an appellate tribunal would result in a lower burden on the courts and taxpayers.