The Rajya Sabha on Wednesday approved a bill aimed at streamlining the establishment of GST appellate tribunals (GSTAT) by modifying the terms of appointment for members and setting a minimum age limit of 50 years for members or the president of the tribunal.
After a detailed discussion, the House returned the Central Goods and Services Tax (Second Amendment) Bill, 2023. Notably, Opposition members abstained from participating in the debate and were absent from the House when Finance Minister Nirmala Sitharaman moved the Bill for consideration. The Lok Sabha had passed the Bill on Tuesday.
The amendment focuses on the Central Goods and Services Tax (CGST) Act, 2017, which governs the levy and collection of CGST on the intra-state supply of goods and services. While 28 tribunals have been named, they are still in the process of being established.
The Bill aims to broaden the pool of candidates eligible for appointment as judicial members to the tribunals. Advocates with a minimum of 10 years of experience, specifically in matters related to indirect taxation, can now be appointed as judicial members. The minimum age for members or the president of the tribunal has been set at 50 years.
Moreover, the Bill raises the age limit for the president of the tribunal from 67 to 70 years and for members from 65 to 67 years. The non-constitution of GSTAT has been identified as a hurdle, denying taxpayers a second appellate remedy. Consequently, taxpayers have been seeking relief directly from the High Court, placing an additional burden on them, the bill explained, elucidating the rationale behind the amendments.