By Suresh P Iyengar

Copyright thehindubusinessline

A glut of GST dispute cases will be transferred to the GST Appellate Tribunal as it starts hearings from December onward. As per the last count in 2023, there were 14,000 GST cases pending in different States and courts. Besides all the pending GST cases, fresh disputes will also be registered directly with the GST Appellate Tribunal from this month.

The GST Council has already set a two-tier appellate body with Principal and State benches, deadlines for appeals, hearings and advance rulings authority.

Appeals against GST claims require pre-deposit of 10 per cent of the disputed amount (maximum ₹40 crore).

The most common reasons for GST litigation include disagreements over classification, valuation of goods/ services, eligibility of input tax credit, refund claims and to some extent aggressive enforcement by GST authorities.

Litigation can be expensive, with businesses facing significant legal and professional fees to resolve disputes. GST issues significantly impacts working capital, pricing and procurement in the taxpayers’ business.

Smita Singh, Partner at S&A Law Offices, said the major reason for GST disputes was due primarily to the fact that on many crucial aspects, the law remains unsettled and divergent interpretations exist across different jurisdictions.

Though the government has notified 31 State benches at 45 locations and one Principal Bench in New Delhi, none of the GSTAT benches are fully operational as of now, she said.

While the exact number of cases to be transferred to GSTAT is not readily available, Finance Minister Nirmala Sitharaman said in the Lok Sabha over 14,000 appeals are pending against disputed tax demands raised by Central GST authorities as of June 30, 2023, primarily due to the absence of a functional tribunal.

Aditya Bhattacharya, Partner, King Stubb & Kasiva, Advocates and Attorneys, said that over the last several years, appeals that should have gone to the Tribunal, have been piling up before the Commissioners (Appeals) and High Courts, with disputed tax demands running into over a lakh crore rupees.

Adding to the initial surge, he said relaxed pre-deposit rules and greater clarity on procedure will further encourage taxpayers to approach the Tribunal.

Unless appointments, digital case-management systems, and facilities are rapidly scaled up, the Tribunal may struggle to cope with the expected caseload, risking further delays and inconsistent outcomes, he said.

Rajarshi Dasgupta, Executive Director – Tax, AQUILAW, said tax professionals expect a sudden spike in filings once the Tribunal opens its doors, potentially overwhelming the system from Day One. Reports from the states indicate that many benches still lack an adequate number of courtrooms, support staff, or even designated premises to function smoothly.

“Unless infrastructure and staffing are ramped up swiftly, the Tribunal may face delays similar to those it was created to avoid,” he said.

Published on September 19, 2025