The implementation of the Goods and Services Tax Appellate Tribunal (GSTAT) has been a long-awaited development under the GST regime. With the tribunal now moving towards operationalisation, clarity is emerging on handling appeals that remained pending due to the non-functioning of GSTAT since GST inception.

Background and Legal Position

Under Section 112 of the CGST Act, 2017, taxpayers have the right to file an appeal before the GSTAT against orders passed by the Appellate Authority. However, due to the non-constitution of GSTAT for several years, taxpayers were unable to exercise this right effectively.

To address this issue, the government had earlier provided relief through amendments. Notably:

  • The Finance Act, 2023 amended Section 112 to provide that the time limit for filing appeals before GSTAT would commence only after the tribunal becomes operational.
  • As per CBIC Notification No. 53/2023 – Central Tax dated 02.11.2023, provisions relating to GSTAT constitution were brought into force.

Recent Developments – Backlog Appeals

Based on GST Council discussions and implementation updates reported across reliable tax platforms, a timeline up to 30th June 2026 has been proposed for filing backlog appeals that could not be filed earlier due to the absence of GSTAT.

This is a significant relief for taxpayers who:

  • Could not file second appeals due to non-availability of the tribunal
  • Have disputes pending at the appellate stage
  • Made payments during adjudication but still wish to contest the matter

It is important to note that such timelines are linked to the operationalisation of GSTAT benches and corresponding procedural rules.

Action Points for Taxpayers and Professionals

  • Identify eligible cases: Review all orders where appeals under Section 112 could not be filed
  • Prepare documentation: Compile orders, grounds of appeal, and supporting records
  • Monitor notifications: Track official CBIC updates regarding GSTAT functioning and deadlines
  • File within timelines: Ensure appeals are filed within the prescribed window once notified

Conclusion

The operationalisation of GSTAT marks a crucial step in strengthening the GST dispute resolution framework. The proposed extension for backlog appeals provides a valuable opportunity for taxpayers to pursue their legal remedies.

Chartered accountants and tax professionals should proactively review pending matters and guide clients to act within the prescribed timelines to avoid loss of appeal rights.

Sources:

  • Section 112, CGST Act, 2017
  • Finance Act, 2023 amendments
  • CBIC Notification No. 53/2023 – Central Tax dated 02.11.2023
  • GST Council recommendations (as reported in official press releases)