A parliamentary committee has called on the finance ministry to adopt a “time-bound” strategy and actively coordinate with all states to ensure the Goods and Services Tax Appellate Tribunal (GSTAT) becomes fully functional across India.
GSTAT, a key institution for resolving GST-related disputes and easing the burden on higher courts, currently faces operational delays. While the government has notified the principal bench in New Delhi and 31 state benches, the body remains only partially functional. In May 2024, Justice (Retd) Sanjaya Kumar Mishra was appointed as the tribunal’s first president.
In its Action Taken Report, the Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, expressed concern over the incomplete establishment of GSTAT benches. Significant delays remain in appointing members—particularly state technical members—with recommendations received from only a few states. The committee urged the finance ministry to expedite the formation of Search-cum-Selection Committees and forward recommendations without delay.
The panel stressed the importance of “regular recruitment” for long-term stability and efficiency, noting that while temporary arrangements could provide relief, a concerted development plan was essential for GSTAT to deliver its intended benefits. It warned that the tribunal’s limited functionality is causing prolonged litigation, overburdening High Courts, and delaying taxpayer relief.
Rs. 7 Trillion GST Evasion Detected in 5 Years
Meanwhile, Parliament was informed that CGST field officers uncovered tax evasion worth approximately ₹7.08 trillion between FY20 and FY25, including ₹1.79 trillion in fraudulent input tax credit (ITC) claims.
In FY25 alone, over ₹2.23 lakh crore in GST evasion was detected. Officials also busted a racket in the iron and steel sector involving fraudulent ITC claims of ₹47.12 crore, leading to one arrest, according to the finance ministry.
Read More: India Assesses Impact of US Tariff Hike; 55% of Exports to Face 25% Duties
