Proposed Amendment to Central Goods and Services Tax Act Introduced in Lok Sabha

New Delhi: In a significant move towards the operationalization of Goods and Services Tax (GST) Appellate Tribunals, Finance Minister Nirmala Sitharaman introduced the Central Goods and Services Tax (Second Amendment) Bill, 2023, in Lok Sabha on Wednesday.

Key Amendments and Objectives of the Bill

The bill aims to align the provisions of the Central Goods and Services Tax Act with the Tribunal Reforms Act. This alignment is crucial to initiate the administrative process for the prompt operationalization of Goods and Services Tax Appellate Tribunals.

According to the statement of objects and reasons, Section 109 of the Central Goods and Services Tax Act, 2017, outlines the constitution of Goods and Services Tax Appellate Tribunals, serving as the second appellate authority within the GST framework. This tribunal is responsible for hearing appeals against orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017, and the State Goods and Services Tax Acts.

Despite the provisions in place, the non-constitution of Goods and Services Tax Appellate Tribunals has resulted in taxpayers seeking a second appellate remedy directly from the High Court, placing an additional burden on the High Courts.

Alignment with Tribunal Reforms Act, 2021

The Bill proposes amendments to Sections 109 and 110 of the Central Goods and Services Tax Act, 2017, aligning them with the Tribunal Reforms Act, 2021 (33 of 2021). This alignment is deemed necessary during the operationalization process of the Tribunal to ensure that the provisions are in harmony with the Tribunal Reforms Act, expediting the establishment of Goods and Services Tax Appellate Tribunals.

The proposed amendments seek to streamline the administrative processes, ensuring the timely and effective functioning of GST Appellate Tribunals.