The Goods and Services Tax Appellate Tribunals (GSTAT) may take an additional six months to become operational, as several states are yet to appoint members or allocate buildings for their offices.
The tribunals were initially expected to commence functioning by the end of December 2024.
"Appointments to state benches and the recruitment of supporting staff for the members are still pending... This process could take another six months," a senior official stated on condition of anonymity.
The GSTAT will consist of approximately 44 benches, each comprising four members—three from the central government and one from the state government.
"The application and interview process for members has been completed, but final shortlisting and verification are still underway," the official said.
Additionally, only 50% of the locations for the tribunals have been identified, with real estate allocation still unresolved, according to the official.
The GSTAT is set to operate entirely electronically and paperlessly. Although the software for the tribunal is ready, procurement of the necessary IT infrastructure is still pending and is expected to be completed by the end of March.
In May 2023, the Centre appointed Sanjaya Kumar Mishra, former Chief Justice of the Jharkhand High Court, as the president of the GSTAT for a term of four years.
In February 2024, the Centre invited applications for judicial and technical member positions for the principal bench in Delhi and state benches across the country. A panel led by the then revenue secretary, Sanjay Malhotra, was tasked with initiating the selection and appointment process for these posts.
Experts have noted that a fully functional GSTAT would relieve pressure on the judiciary and businesses, as the delay has resulted in a backlog of litigation at the high courts.
"With no GSTAT in place, high courts have become essential in handling writ petitions where petitioners lack alternative remedies or cannot approach other competent authorities," said Shivam Mehta, executive partner at Lakshmikumaran and Sridharan Attorneys.
"This has significantly increased the burden on higher courts, leaving taxpayers in limbo when high courts refuse to entertain writs on grounds such as the existence of alternative remedies or the absence of legal questions."
As of August 2023, a total of 14,227 GST appeals were pending, and this number has since grown.
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