Union Finance Minister Nirmala Sitharaman announced a significant upgrade to how Goods and Services Tax (GST) disputes will be handled, promising a system that is not only fair and swift but also transparent and accessible to everyone. This new era of justice was inaugurated with the launch of the GST Appellate Tribunal (GSTAT) on Wednesday, September 24, 2025.
The GSTAT serves as the crucial appellate body under GST law, designed to address appeals against decisions made by initial tribunals. Although its benches were established in 2019, the appointment of the tribunal’s President faced delays due to legal challenges, finally occurring in 2024.
During its 56th meeting on September 3, 2025, the GST Council resolved to make the GSTAT fully operational for receiving appeals by the end of September, with hearings scheduled to commence before the close of December of the same year.
Highlighting past challenges, Ms. Sitharaman stated during the launch event that “previously, different states frequently had varying interpretations of product classifications and even fundamental definitions, leading to numerous complications.”
She further explained that the GST Council was compelled to issue constant clarifications, which unnecessarily tied up businesses’ capital, particularly impacting Micro, Small, and Medium Enterprises (MSMEs). “With the GSTAT now in place, supported by both the Central and State governments, we are ushering in a new era of predictable and specialized legal interpretation,” she emphasized.
The Finance Minister clarified that while initial appeals for taxpayer disputes will still be handled by the tax administration, any subsequent appeal, regardless of whether the original order came from the Central or a State authority, will be heard by the GSTAT. This tribunal will act as a unified, independent body for dispute resolution.
Ms. Sitharaman firmly stated that the “ease of living for taxpayers encompasses more than just filing returns and receiving refunds; it crucially includes fair and efficient dispute resolution.” She positioned the GSTAT as a logical progression in these reforms, calling it a significant stride towards improving the ease of doing business and an essential platform for justice.
Furthermore, the Union Finance Minister advocated for clear, concise decisions, free of legal jargon, and emphasized the need for strict timelines for case listing, hearings, and judgment pronouncements.
Echoing these sentiments, Sanjaya Kumar Mishra, President of the GSTAT, addressed the gathering, emphasizing that the tribunal’s role in delivering justice is paramount, especially “given the intricate nature of the law.”
He noted that “the GST regime, initiated in July 2017, represents a monumental reform. However, like any new or transformative legal framework, it inevitably leads to variations in interpretation and application.”
Mr. Mishra further highlighted that the GSTAT is set to become the nation’s largest tribunal, comprising over 116 members, operating across 32 benches, and spanning 45 locations. He acknowledged that the tribunal will commence operations with a significant backlog of over 4 lakh cases.
To tackle this backlog, Mr. Mishra explained that the GSTAT would prioritize cases that are crucial for establishing systematic certainty. He projected that approximately 90% of cases brought before the GSTAT would be handled by a single bench, indicating they involve less complex legal questions and a tax burden under ₹50 lakh.