In a move poised to significantly streamline India’s tax dispute resolution, the government has officially activated the Goods and Services Tax Appellate Tribunal (GSTAT). This critical development includes the notification of clear timelines for appeals and an expanded scope for cases handled by the GSTAT’s Principal Bench.
The decision to operationalize the GSTAT was made during its 56th GST Council meeting on September 3, with a clear mandate to start accepting appeals by the end of September and commence hearings before December concludes.
A recent notification from the Ministry of Finance, issued on September 17, outlines the appeal deadlines: cases relating to orders issued before April 1, 2026, can be filed until June 30, 2026. For orders communicated on or after April 1, 2026, taxpayers will have a three-month window to file their appeals.
Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, enthusiastically described the GSTAT’s operationalization as a ‘game-changer’ for India’s indirect tax system. He highlighted how years of unresolved appeals had trapped taxpayers in a quagmire of locked capital and escalating litigation expenses.
Mishra emphasized that this new, structured framework promises much-needed predictability and ensures prompt access to justice for businesses.
Furthermore, a second notification from the Ministry expanded the Principal Bench of the GSTAT’s jurisdiction. This now includes complex areas like input service distributor credit distribution, matters involving identical legal questions across various state benches, and intricate cross-border Integrated GST concerns such as Online Information Database Access and Retrieval (OIDAR) services and online money gaming.
According to Mishra, by preventing conflicting rulings and freeing up significant capital, the Tribunal’s launch underscores the increasing maturity of India’s GST regime and reinforces confidence in a fair, rule-based dispute resolution process.
Saurabh Agarwal, Tax Partner at EY India, also lauded the GSTAT’s activation as a pivotal advancement for indirect tax dispute resolution. However, he cautioned that substantial challenges, particularly a considerable backlog of GST cases, still lie ahead.
Agarwal stressed that while the Tribunal is a crucial first step, tackling the existing backlog demands a well-defined strategy for efficiently resolving these older cases.
He further suggested that exploring alternative dispute resolution mechanisms, such as a specialized Arbitration Tribunal, could effectively supplement the GSTAT’s functions, leading to quicker resolutions.
This multi-faceted approach, Agarwal concluded, would not only expedite dispute resolution but also strengthen India’s dedication to enhancing its Ease of Doing Business index.