The launch of the state Benches of the Goods and Services Tax Appellate Tribunal (GSTAT) — India’s long-awaited appellate framework for GST disputes — is likely to be postponed, as several key appointments and infrastructure arrangements are still not in place, officials aware of the developments indicated.
State Benches Not Ready for Operation
GSTAT, which is meant to offer taxpayers an independent platform to contest decisions of GST appellate authorities, is structured with a principal bench in New Delhi and 31 state-level benches spread across 45 locations.
Each state bench must consist of two judicial members selected by the Centre and two technical members — one nominated by the Centre and the other by the respective state government. However, despite the Centre having completed the selection process for its nominees, several appointees have not yet received formal posting orders.
Compounding the delay, most states have yet to finalise their technical members. Only a handful — including Uttar Pradesh and Gujarat — have completed the process. In many other states, the selection of technical members has either not begun or remains stuck at the administrative level.
Repeated queries to the Finance Ministry about the status of pending postings have reportedly gone unanswered.
Massive Appeal Backlog Continues
With the tribunal yet to start functioning, nearly six lakh GST appeals continue to remain unresolved nationwide. This growing backlog is placing significant pressure on both taxpayers and businesses, which remain caught in lengthy legal queues.
Tax experts warn that the continued wait for the tribunal is undermining trust in GST’s dispute-redress mechanism.
“Businesses often deposit large sums as a prerequisite for filing appeals. These amounts get locked up for prolonged periods due to delays in adjudication,” said Abhishek A. Rastogi of Rastogi Chambers. He noted that expediting the tribunal’s launch is essential to restore faith in the system.
Phased Implementation Planned, But Still Far Off
In September 2025, during the GST Council’s 56th meeting, it had been decided that GSTAT would begin functioning in phases from October 2025, supported by digital infrastructure and virtual hearing capabilities.
When GSTAT was formally inaugurated in September 2024, Finance Minister Nirmala Sitharaman had extended the deadline for filing appeals in older GST cases to June 30, 2026. Appeals were to be registered gradually under a first-in-first-out process to avoid overwhelming the system.
Leadership Appointed, Ecosystem Not Yet in Place
Justice (retired) Sanjaya Kumar Mishra was appointed President of the tribunal in May 2024. But despite appointments at the highest level, the actual operational ecosystem — including courtrooms, technical staff, administrative offices, and digital systems — remains incomplete in several states.
Experts Call for Interim Solutions
With the backlog steadily increasing, legal experts caution that without urgent intervention, the dispute load may spiral into an unmanageable situation. Some have suggested introducing a limited amnesty scheme for minor GST contraventions to ease the burden until the tribunal is operational.
Others emphasise the need for states and the Centre to coordinate more effectively so that small disputes do not snowball into prolonged litigation.
Uncertain Timeline Ahead
Until the required infrastructure and member appointments are finalised, the launch of state benches may continue to face setbacks. For now, taxpayers must wait longer for the tribunal that was intended to streamline and speed up indirect tax dispute resolution in the country.
