The Goods and Services Tax Appellate Tribunal (GSTAT) is finally on the horizon, marking a significant milestone in India’s GST 2.0 journey following the recommendations of the 56th GST Council Meeting. These reforms aim to strengthen the institutional framework and improve dispute resolution under GST. But to fully appreciate its significance, it helps to understand the background and evolution of GSTAT.

Formation of GSTAT: From Law to Reality

The idea of GSTAT has been part of India’s GST framework since the enactment of the CGST Act in 2017. The Act, passed as part of the One Hundred and First Amendment to the Constitution, provided for a dedicated appellate tribunal to resolve GST disputes, aiming to reduce the burden on High Courts and ensure uniformity in decisions.

However, despite this legal provision, GSTAT was not immediately constituted, leaving businesses to approach High Courts and State Appellate Authorities for appeals. Over the years, repeated recommendations from the GST Council emphasized the need for a specialized tribunal. 

Significant milestones in its journey include:

• February 2024 – The Ministry of Finance initiated the process to appoint Judicial and Technical Members for GSTAT. This was essentially preparing the bench before formally notifying the tribunal.
• July 31, 2024 – The formal notification of GSTAT was issued, establishing the Principal Bench in New Delhi and 31 State Benches. 
• April 24, 2025: GSTAT Procedure Rules, 2025 were notified, laying down guidelines for filing appeals, conducting hearings, and issuing orders.
• September 2025 – June 2026: The long-awaited Goods and Services Tax Appellate Tribunal (GSTAT) will soon be a reality. As recommended by the GST Council in the 56th Council Meeting held on 3rd of Sept 2025 :
  ✅ Appeals to be accepted before September 2025 
  ✅ Hearings to commence by December 2025 
  ✅ Backlog appeal filing allowed up to 30th June 2026 
  ✅ Principal Bench to also serve as National Appellate Authority for Advance Ruling
  This journey marks the transition from a provision in law to a fully functioning institution, bridging the gap between state-level authorities and higher judiciary.

Why GSTAT Matters to Companies

For businesses operating under GST, the operationalization of GSTAT addresses long-standing challenges in dispute resolution:

1. A Dedicated Forum for GST Appeals

Until now, appeals beyond the Appellate Authority had to be filed directly with the High Courts. High Courts, already overburdened with large caseloads, could not provide timely relief. GSTAT offers a specialized appellate forum dedicated to GST, ensuring more efficient resolution of tax disputes.

2. Consistency in Rulings

Divergent High Court judgments on similar GST matters created confusion, especially for companies with operations across multiple states. GSTAT provides greater consistency and predictability in tax rulings, enabling businesses to align compliance strategies with more confidence.

3. Faster and Cost-Effective Resolution

Litigating at the High Court level is both expensive and time-consuming. With GSTAT, companies gain access to a structured mechanism that reduces delays and associated costs.

4. Certainty for Tax Positions

For corporates, clarity on how a tax position will be treated is essential for long-term planning. GSTAT decisions will serve as important precedents, giving companies greater certainty in tax planning and financial forecasting. 

5. Boost to Ease of Doing Business

A strong dispute resolution system is a hallmark of a mature tax regime. By operationalizing GSTAT, India strengthens investor confidence and enhances the ease of doing business. 

6. Uniformity in Advance Rulings

With the Principal Bench doubling up as the National Appellate Authority for Advance Ruling, contradictory advance rulings across states will be minimized. This is a major benefit for businesses with multi-state presence.

While GSTAT promises speed, consistency, and certainty, it also brings new compliance challenges like tracking the case in new forum, meeting strict limitation periods for appeal filing and hearings, updating contingent liabilities reporting accurately in financial statements.

Companies with multiple state registrations and multiple cases ongoing need a structured, technology-enabled way to manage their GST litigations.

How IRISGST Litigation Management System (LMS) Helps

At IRISGST, we anticipated this requirement early on. Our Litigation Management System (LMS) is designed to help enterprises seamlessly adapt to GSTAT and beyond. With our LMS, businesses can:

• Track appeals across all authorities, including GSTAT
• Monitor compliance deadlines with automated reminders for appeal filing and hearings
• Centralize all litigation documents, including tax positions taken, for easy access and management.
• Capture data at a granular issue level with case-wise grouping to enable deeper insights and better reporting.
• Generate a contingent liability report to assess financial exposure/risks and assist in CARO reporting compliance.

The Way Forward

The operationalization of GSTAT is a landmark moment for India’s GST ecosystem. It will not only ease the burden on High Courts but also provide companies with a structured and predictable framework for dispute resolution. However, businesses must also prepare themselves for tighter compliance oversight.

With IRISGST’s Litigation Management System, enterprises can stay ahead by ensuring litigation is tracked, deadlines are not missed, and financial risks are clearly understood.

👉 Connect with our team to learn how your business can leverage LMS to manage GST litigations efficiently.