CJI DY Chandrachud Flagged Anomalies In GST Appellate Tribunal Provision : Finance Minister Tells Lok Sabha
Union Finance Minister Nirmala Sitharaman on Tuesday (December 19) told the Lok Sabha that the Chief Justice of India highlighted certain discrepancies between the Central Goods and Services Tax 2017 and the Tribunal Reforms Act 2021 regarding the age of qualifications of the members of the GST Appellate Tribunal.It is to resolve the issues flagged by CJI DY Chandrachud that the Central Goods...
Union Finance Minister Nirmala Sitharaman on Tuesday (December 19) told the Lok Sabha that the Chief Justice of India highlighted certain discrepancies between the Central Goods and Services Tax 2017 and the Tribunal Reforms Act 2021 regarding the age of qualifications of the members of the GST Appellate Tribunal.
It is to resolve the issues flagged by CJI DY Chandrachud that the Central Goods and Services Tax (Second Amendment) Bill, 2023 is being moved, the Minster added.
She pointed out that Section 100 of the CGST Act provided for the constitution of the GST Appellate Tribunal and prescribed the eligibility conditions of the Tribunal members. In 2019, the Madras High Court struck down the composition of the GST Appellate Tribunal on the ground that the technical members exceeded the judicial members. In August 2021, the Tribunal Reforms Act 2021 was enacted to standardise the qualifications and appointment processes for all tribunals.
Later, the GST council discussed the changes required to the GST Appellate Tribunal to make it in tune with the judgments. Subsequently, the Finance Act 2023 amended Section 110 of the CGST Act to bring changes to the GST Appellate Tribunal.
However, it was brought to the notice of the Ministry, by the Chief Justice of India, in his administrative side, through the Supreme Court registry, that the qualifications prescribed in the CGST Act for the GST Appellate Tribunal were not in consonance with the Tribunal Reforms Act 2021.
Sitharaman told the house about the two points flagged by the CJI : (1) The maximum age limit for the post of the President of the Appellate Tribunal and members is 67 years and 65 years respectively as per the CGST Act. Under the Tribunal Reforms Act 2021, it is 70 years and 67 years respectively. (2) CGST Act did not have a provision regarding the eligibility of an advocate with a standing of 10 years at the bar for appointment as a judicial member, whereas the same is available in the Tribunal Reforms Act 2021.
Taking into consideration these aspects, the present amendment bill has been moved.
"So, these two particular points which the Chief Justice of India highlighted were placed before the GST Council in its 52nd meeting held on October 7. The amendments to Section 110 of the CGST Act, aligning the provisions with the Tribunal Reforms Act, were approved by the council. So, accordingly, the CGST Second Amendment Bill, which is now before us, brings the provisions of Sections 109 and 110 of the CGST Act in line with the provisions of the Tribunal Reforms Act 2021," she said.
After the bill is passed, the process to select the members will be initiated. The Finance Minister added that Supreme Court judge Justice Sanjiv Khanna, as nominated by the CJI, will be chairing the Search cum Selection Committee for GST Appellate Tribunal.
The Central Goods and Services Tax (Second Amendment) Bill, 2023, introduced on December 13, aimed to amend the Central Goods and Services Tax (CGST) Act, 2017. The legislation, aiming to amend the principal act which is central to the Goods and Services Tax (GST) regime, seeks to redefine the qualifications and age limits for members of the GST Appellate Tribunal (GSTAT). While the original provisions mandated the eligibility of judges or district judges with specific service periods, the amendment seeks to expand this to include seasoned advocates with a minimum of 10 years of experience in matters related to indirect taxation. The age cap for the president and members of the tribunal is also proposed to be increased to 70 and 67 years, respectively, from the previous ceilings of 67 and 65 years.
The finance minister also elaborated on the meticulous process behind the amendment, involving discussions in the GST Council, the constitution of a Group of Ministers (GoM), and subsequent approval of the proposed changes. The passage of the bill paved the way for the initiation of the selection process for GSTAT members.
The second bill, the Provisional Collection of Taxes Bill 2023, that was passed yesterday empowers the government to provisionally levy and collect customs and excise duties for 75 days, providing immediate effect to changes announced in the Budget. FM Sitharaman clarified that this measure prevents speculative activities until the Finance Bill is passed.