GST Appellate Tribunal

What is in the News ?

• The Lok Sabha on Friday passed Finance Bill, 2023 with 64 amendments, including one that seeks to set up the much-awaited GST Appellate Tribunal (GSTAT), which will deal with tax disputes, and also lessen the burden on the higher judiciary, which has repeatedly sought the institution of such a body.

GST Appellate Tribunal– GSTAT

• Its constitution was announced recently by GST Council.
• Composition : GSTAT will have one principal bench in New Delhi and benches or boards in states (each state can decide on state level benches, subject to approval of the council). Northeastern states could opt for one bench for 2-3 states.
• Membership :
  • Two technical and two judicial members, with equal representation from the Centre and states.
  • For a particular state bench, all judicial and technical members will be from that state.
• Central Goods and Services Act, 2017 mandates for the constitution of a GSTAT and its various benches.

Significance

• Help resolve the rising number of disputes under GST regime.
• Help unclog the pendency of number of cases related to GST in High Courts and other judicial fora.

What is Finance Bill ?

• Finance Bill’ means the Bill ordinarily introduced each year to give effect to the financial proposals of the Government of India.
• It contains some provisions related to taxation and expenditure and additionally contains provisions related to any other matter
• A Money Bill is a type of financial bill that contains provisions solely related to the matters mentioned in Article 110 of the Indian Constitution

Practice Questions for Prelims

Q. Which of the following pairs is not correctly matched?

1. Money Bills- Article 116
2. Finance Bills (I)- Article 117 (1)
3. Finance Bills (II)- Article 117 (2)

a) 1 only
b) 1 and 3 only
c) 3 only
d) All of the above

Ans. b

Mains Practice Question

Review the effectiveness of the current goods and services tax (GST) system and make recommendations for improvements.

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