The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan today. It is motley likely that the council may discuss the issue of Goods and Service Tax Appellate Tribunal (GSTAT) which is still not functional.
Recently, the Supreme Court in the case of Team Computers Private Limited Versus Union Of India & Ors. issued the notice to Union Of India as the GST Appellate Tribunal (GSTAT) is not functional till date.
Non-Functional GSTAT : Difficulties
- Over Burden On High Court
The GSTAT is a necessity as it acts as a specialized redressal center for issues related to GST. Currently, due to the non-functionality of the GSTAT the only option available to litigants in the absence of GSTAT is to approach the High Court. It is worthwhile to note that High courts are neither fact finding authority nor is a tax-specialised body to handle the GST litigation. High Court are already overburned with lots of litigation pending before it, and the non-functionality of GSTAT further adds to the misery.
- Difficulty In GST Related Laws Interpretations
The GSTAT are often specialized in GST-related law, enabling faster and more informed decision-making. Without such specialized bodies, general courts may not have the expertise needed to handle complex issues efficiently. Courts of higher jurisdiction (like the Supreme Court or High Courts) are already overburdened with cases. In absence of GSTATs shifts more work onto these already stretched institutions, potentially leading to more delays and reduced efficiency in the judicial process.
- Increased In Litigation Cost and Accessibility Barriers
Without an GSTAT, parties may have to approach higher courts, where legal proceedings can be more expensive, both in terms of attorney fees and other costs associated with litigation. This may reduce access to justice for individuals and smaller entities who cannot afford the costs of higher-level court procedures.
In addition to this Geographical Barriers plays a vital role in enhancing the litigant’s difficulty. GSTAT often provide localized services, making it easier for people in specific regions to challenge decisions. Without them, parties may need to travel long distances to higher courts and Supreme Court, adding to the burden of seeking justice.
- Lack of Alternative Dispute Resolution (ADR) Mechanisms
Appellate tribunals like GSTAT often provide an alternative to formal litigation, offering a more accessible, less formal, and potentially faster means of dispute resolution. In their absence, parties may have fewer options to resolve disputes efficiently, leading to more prolonged legal battles.
Conclusion
Therefore, looking at the difficulties and challenges due to the non-functionality of GSTAT, the 55th GST council is likely to have some solution for the same.
For the live updates on 55th GST Council Meet visit : https://www.jurishour.in/gst/55th-gst-council-meet-live-updates/
