GST AMENDMENT BILL (Syllabus: GS Paper 2 – Polity)

Context: Recently, the Finance Minister introduced The Central Goods and Services Tax (Second Amendment) Bill, 2023 in the Lok Sabha, aiming to raise the age limit for the president and members of GST appellate tribunals (GSTATS).

Central Goods and Services Tax (Second Amendment) Bill, 2023

• GST Tribunal Appointments: This bill aims to broaden the pool of eligible candidates for judicial members in tribunals.
• Alignment with Tribunal Reforms Act: Amendments in line with the Tribunal Reforms Act, 2021, propose changes in the appointment process of tribunal presidents and members.
• Age Criteria and Tenure Limits: The proposed amendments suggest a minimum age of 50 for tribunal presidents and members.
• Tenure Limits: 70 and 67 years
• Impact on Taxpayer Remedies:  The bill highlights that the absence of GSTAT denies taxpayers a second appellate remedy, leading to an increased burden on high courts.

Goods and Services Tax Appellate Tribunals

• About: It serves as the second level of appeal within the GST framework, available for challenging any unsatisfactory rulings issued by the First Appellate Authorities under the CGST and SGST.
• Establishment by: Section 109 of the CGST Act 2017
• Composition: Two judicial members and two technical members.

oThe Tribunal is likely to be headed by a former Supreme Court judge or a former Chief Justice of a High Court.

• Headquarters: New Delhi