A bill aimed at amending the Central Goods and Services Tax Act to facilitate the operationalization of the Goods and Services Tax Appellate Tribunals has been introduced in Lok Sabha.
Introduction of the Bill
The Central Goods and Services Tax (Second Amendment) Bill, 2023 was presented in Lok Sabha by Finance Minister Nirmala Sitharaman. The proposed legislation seeks to modify the Central Goods and Services Tax Act, 2017.
Objectives of the Bill
According to the statement of objects and reasons outlined in the Bill, Section 109 of the Central Goods and Services Tax Act, 2017, establishes the Goods and Services Tax Appellate Tribunal as the second appellate authority for handling appeals against orders issued by the Appellate Authority under the Central Goods and Services Tax Act, 2017, and the State Goods and Services Tax Acts.
Addressing the Need for Tribunals
The absence of constituted Goods and Services Tax Appellate Tribunals has deprived taxpayers of a second appellate remedy. Consequently, taxpayers have resorted to seeking relief directly from the High Court, thereby overburdening the High Courts.
Previous Amendments
Amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 were notified in July of the current year to enable the establishment of the Central Goods and Services Tax Appellate Tribunals.
Alignment with Tribunal Reforms Act
During the operationalization process of the Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 needed alignment with the Tribunal Reforms Act, 2021 (33 of 2021). Therefore, the proposed bill aims to synchronize the provisions of the Central Goods and Services Tax Act, 2017 with the Tribunal Reforms Act, 2021, to facilitate the administrative process for establishing the Goods and Services Tax Appellate Tribunals promptly.
