Lok Sabha Question No. 158 (UNSTARRED), answered on 2025-07-21
Subject: Establishment of GSTAT
Ministry: FINANCE
Asked by: Shri Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 158

TO BE ANSWERED ON MONDAY, THE 21 ST  JULY, 2025/ASHADHA 30, 1947 (SAKA)

## ESTABLISHMENT OF GSTAT

- 158 . SHRI MANISH TEWARI:

Will the minister of FINANCE be pleased to state:

- (a)  the  total  number  of  Goods  and  Services  Tax  Appellate  Tribunal  (GSTAT) benches, including Principal and State Benches, notified for each State and Union Territory along with their proposed locations;
- (b)  the  total  number  of  fully  operational  GSTAT  benches,  including  Principal  and State Benches, in the country, State/UT-wise;
- (c)  the  details  of  the  budget  allocated,  funds  released  and  utilised  so  far  for  the establishment and operationalisation of GSTAT benches, State/UT-wise;
- (d) the reasons for the delay in making the GSTAT benches operational despite the Central Goods and Services Tax Act, 2017 came into effect in 2017; and
- (e) the details of interim measures being adopted to handle pending GST disputes due to the non-availability of an appellate forum under GST?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) There are 31 state benches located at 45 locations and a Principal Bench at New Delhi. Notified vide S.O. 5063(E) dated 26 th November, 2024 (as amended from time to time).
- (b) None
- (c) The Budget allocation for the Good and Services Tax Appellate Tribunal (GATAT) for  the  FY  2025-26  is  Rs.  210,04,70,000/-.  The  fund  utilized  till  dated  is  Rs. 3,05,58,376/-.
- (d) Delay in making the GSTAT benches operational is due to the following reasons:
1.  The  original  provisions  of  section  109  and  110  of  the  CGST  Act  were challenged  in  the  Revenue  Bar Association  Vs.  Union  of  India  [WP  No. 21147 of 2018]; and in the order dated 20.09.2019, Hon'ble High Court of Madras held struck down the relevant provisions of the law.
2.  Subsequently, Government  amended  around  30 laws to rationalize existing Tribunals and bring uniformity in conditions of service like tenure, retirement age, salary and allowances, method of appointment etc. which were also challenged and struck down by the Supreme Court.
3.  On  this  basis  the  Tribunal,  Appellate  Tribunal  and  other  Authorities (Qualifications,  Experience  and other Conditions of Service of Members) Rules,  2020  were  issued  which  were  again  challenged  in  the  Supreme Court,  and  the  Court  directed  certain  other  changes  to  be  incorporated after which, Tribunal Reforms Act 2021 was enacted.
4.  Thereafter,  a  Group  of  Ministers  (GoM)  was  constituted.  Based  on  the recommendation of the GoM the GST Council in its 49th Meeting dated 18th Feb, 2023 recommended constitution of the Goods and Services Tax Appellate Tribunal. Accordingly, CGT Act was amended by the Finance Act 2023 wherein Section 109 & 110 of the said Act was amended.
5.  Further, certain other amendments in the said sections were carried out on 28 th December,  2023 vide  the  CGST  (Second Amendment) Act 2023, to align the said sections with the Tribunal Reforms Act.
6.  Post this, the appointment of Members, Staffs and other requirements for operationalising GSTAT have commended.

(e) On the recommendations of the GST Council, a new sub-section 16(5) has been inserted in the CGST Act through the Finance (No. 2) Act, 2024, with retrospective effect from July 1st, 2017 to relax the time limit prescribed under Section 16(4) of the CGST Act for availing input tax credit in respect of any invoice or debit note to make eligible  the  input  tax  credit  for  the  financial  years  2017-18,  2018-19,  2019-20,  and 2020-21 claimed through any GSTR-3B return filed up to November 30, 2021.

Amendment in  Section  107  and  Section  112  of  CGST Act  for  reducing  the amount of pre-deposit required to be paid for filing of appeals under GST to ease cash flow and working capital blockage for the taxpayers. The maximum amount for filing appeal with the appellate authority has been reduced from Rs. 25 crores CGST and Rs. 25 crores SGST to Rs. 20 crores CGST and Rs. 20 crores SGST. Further, the  amount  of  pre-deposit  for  filing  appeal  with  the  Appellate  Tribunal  has  been reduced  from  20%  with  a  maximum  amount  of  Rs.  50  crores  CGST  and  Rs.  50 crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.

Insertion of Section 128A in CGST Act has been carried out to provide for an amnesty scheme, which provide for waiver of interest or penalty or both relating to demands raised under Section 73, for FY 2017-18 to FY 2019-20 in cases where the taxpayer pays the full amount of tax demanded in the notice upto 31.03.2025.

****