From First Appeal To Second Appeal: Completing The GST Dispute Chain

The Goods and Services Tax Appellate Tribunal, better known as GSTAT, is one of the most important institutional developments in India’s GST journey.

- Adv Sherry Samuel Oommen

GST was introduced with the promise of a unified indirect tax system, but for several years one critical part of the dispute-resolution structure remained incomplete: a fully functional second appellate forum. Taxpayers could file a first appeal before the departmental appellate authority, but in the absence of GSTAT, many matters travelled to High Courts through writ petitions, even where the dispute was mainly factual — such as reconciliation, input tax credit, valuation, classification, refund rejection, cancellation of registration or penalty, thereby clogging the system. The GSTAT, Ernakulam Bench for Kerala and Lakshadweep has been operational since March 2026 in a temporary office. One cannot await the day when the GSTAT starts functioning at its permanent office.

Moving on, the Union Finance Minister formally launched GSTAT in New Delhi on 24 September 2025. The Government described GSTAT as a statutory appellate body constituted to hear appeals against orders passed by GST appellate authorities and to provide taxpayers with an independent forum for justice. GSTAT is designed to function through a Principal Bench in New Delhi and 31 State Benches across 45 locations, giving the institution both national reach and regional accessibility. Each Bench is expected to combine judicial and technical expertise, with Judicial Members and Technical Members from both the Centre and the States.