NEW DELHI: In a landmark move poised to transform India’s indirect tax dispute resolution system, the Central government has notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, paving the way for the long-awaited operationalization of the GST Appellate Tribunal ( GST AT). Notified under Section 111 of the Central Goods and Services Tax (CGST) Act, 2017, and effective from April 24, 2025, the new rules introduce a digital-first, transparent framework aimed at resolving pending GST appeals, and are being hailed by experts as a "game-changer" for taxpayers seeking timely and fair redressal.
The absence of a functional GSTAT has forced taxpayers to seek relief from High Courts, escalating costs and delays. "These rules establish a digital-first, transparent framework to tackle over 8,100 pending GST cases, including more than 2,800 unresolved for over a year, as reported in the recent Compliance Audit of the Central Board of Indirect Taxes and Customs (CBIC)In the absence of a constituted GSTAT, genuine litigants have had to approach High Courts to seek relief from tax recoveries or coercive actions," said Brijesh Kothary, Partner at Khaitan & Co.
He added that taxpayers are eagerly awaiting the Tribunal’s establishment to address unwarranted tax demands, with the government expediting appointments of judicial and technical members while the Goods and Services Tax Network (GSTN) develops the technology platform for appeal processing.
Comprising 124 rules across 15 chapters, the GSTAT Procedure Rules, 2025, mandate electronic filing of appeals through the GSTAT portal, ensuring standardized formats and clear timelines.
Sonam Chandwani, Managing Partner at KS Legal & Associates, described the rules as "a pivotal reform to operationalise the GST Appellate Tribunal with a digital-first, transparent, and efficient framework." She emphasized that they "replace an ad hoc system that left taxpayers grappling with delays and inconsistencies" by enforcing online filings, public hearings, and ex parte provisions.
Addressing the backlog and procedural challenges
Taxpayers intending to appeal adverse orders must deposit 10% of the disputed amount, capped at Rs 20 crores each for CGST and SGST, and notify the proper officer of their intent to file once the GSTAT is operational.
"Taxpayers are advised to prepare draft appeals in advance," Kothary noted. The rules aim to reduce High Court litigation, with Chandwani stating they will "slash judicial backlogs, boost taxpayer trust, and align with India’s ease of doing-business goals."
CA Ashish Niraj, Partner at A S N & Company, Chartered Accountants, highlighted the rules’ comprehensive scope: "These rules were long awaited by professionals and business entities, and they contain the whole functioning, procedures, powers, etc. All documentation, order uploads, etc., will be done electronically through the GSTAT portal." He praised clarifications like the Tribunal’s power to rectify arithmetical or clerical errors without notice and provisions for reviewing Supreme Court or High Court orders before the same bench.
Key highlights of the GSTAT procedure rules, 2025
Ensuring transparency and fairness
The rules prioritize transparency and integrity. "The proceedings under the rules will be open for public unless the tribunal has specifically limited its access," Niraj stated. He also highlighted ethical provisions: "The President or any Member recusing himself may record reasons for recusal; however, no party to the proceedings or any other person shall have a right to know the reasons for recusal." The Tribunal’s powers, akin to those under the Code of Civil Procedure, 1908, include summoning witnesses and enforcing attendance, ensuring legally binding outcomes, Niraj added.
The rules address procedural nuances, such as abatement of proceedings in cases of a respondent’s death, insolvency, or company wind-up, as Niraj noted. "Nothing in these rules shall be deemed to limit or otherwise affect the inherent powers of the Appellate Tribunal to make such orders or give such directions as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Appellate Tribunal," he emphasized, underscoring the Tribunal’s flexibility.
Implementation and challenges
The government is moving swiftly to operationalize the GSTAT. "The Government is expediting the appointment of judicial and technical members for both Principal and State benches of GSTAT, while the Goods and Services Tax Network (GSTN) is simultaneously developing the technology platform for processing appeals," Kothary confirmed.
However, digital access remains a concern. "The shift to a tech-driven, uniform Tribunal will expedite dispute resolution, reduce High Court litigation, and foster a predictable GST ecosystem, though challenges like digital access for smaller taxpayers remain," Chandwani added.
With a fee structure—Rs 5,000 for record inspection and applications, Rs 5 per page for certified copies—and standardized forms like GSTAT Form-01 and GSTAT Form-06, the rules ensure accessibility and uniformity.
The absence of a functional GSTAT has forced taxpayers to seek relief from High Courts, escalating costs and delays. "These rules establish a digital-first, transparent framework to tackle over 8,100 pending GST cases, including more than 2,800 unresolved for over a year, as reported in the recent Compliance Audit of the Central Board of Indirect Taxes and Customs (CBIC)In the absence of a constituted GSTAT, genuine litigants have had to approach High Courts to seek relief from tax recoveries or coercive actions," said Brijesh Kothary, Partner at Khaitan & Co.
He added that taxpayers are eagerly awaiting the Tribunal’s establishment to address unwarranted tax demands, with the government expediting appointments of judicial and technical members while the Goods and Services Tax Network (GSTN) develops the technology platform for appeal processing.
Comprising 124 rules across 15 chapters, the GSTAT Procedure Rules, 2025, mandate electronic filing of appeals through the GSTAT portal, ensuring standardized formats and clear timelines.
Sonam Chandwani, Managing Partner at KS Legal & Associates, described the rules as "a pivotal reform to operationalise the GST Appellate Tribunal with a digital-first, transparent, and efficient framework." She emphasized that they "replace an ad hoc system that left taxpayers grappling with delays and inconsistencies" by enforcing online filings, public hearings, and ex parte provisions.
Addressing the backlog and procedural challenges
Taxpayers intending to appeal adverse orders must deposit 10% of the disputed amount, capped at Rs 20 crores each for CGST and SGST, and notify the proper officer of their intent to file once the GSTAT is operational.
"Taxpayers are advised to prepare draft appeals in advance," Kothary noted. The rules aim to reduce High Court litigation, with Chandwani stating they will "slash judicial backlogs, boost taxpayer trust, and align with India’s ease of doing-business goals."
CA Ashish Niraj, Partner at A S N & Company, Chartered Accountants, highlighted the rules’ comprehensive scope: "These rules were long awaited by professionals and business entities, and they contain the whole functioning, procedures, powers, etc. All documentation, order uploads, etc., will be done electronically through the GSTAT portal." He praised clarifications like the Tribunal’s power to rectify arithmetical or clerical errors without notice and provisions for reviewing Supreme Court or High Court orders before the same bench.
Key highlights of the GSTAT procedure rules, 2025
- Effective Date: Rules took effect on April 24, 2025, upon Gazette publication (Rule 1).
- Applicability: Covers all appeals filed before the GSTAT (Rule 1).
- Tribunal Structure: Comprises Principal and State Benches with Judicial and Technical Members (Rules 2, 109).
- Authorized Representatives: Must file valid authority letters, e.g., vakalatnama, to represent parties (Rule 28).
- Electronic Filing: Appeals must be submitted online via GSTAT portal in prescribed formats (Rules 18, 115).
- Appeal Requirements: Must include facts, legal grounds, GSTIN, and certified/attested impugned order (Rules 20-21).
- Paragraph Structure: Each paragraph must address a separate point or argument (Rule 20).
- Time Computation: Excludes holidays; delays condonable with sufficient cause (Rules 3, 14).
- Registry Management: Registrar oversees appeal scrutiny, record maintenance, and cause lists (Rule 15).
- Document Translation: Non-English/Hindi documents require certified English translations (Rule 23).
- Public Hearings: Open unless restricted; ex parte decisions for absent parties (Rules 7, 42-43).
- Cause Lists: Published online daily, prioritizing urgent and part-heard matters (Rules 38-39).
- Miscellaneous Applications: Delay condonation, adjournment, or early hearing applications use GSTAT Form-01 with affidavits (Rule 29).
- Tribunal Powers: Can summon witnesses and enforce attendance per Code of Civil Procedure, 1908 (Rules 84, 88).
- Inherent Powers: Allows orders to ensure justice or prevent abuse of process (Rule 10).
- Recusal Provisions: Members recuse for personal, familial, or professional conflicts, with undisclosed reasons (Rule 106).
- Order Publication: Signed orders uploaded online; final orders may be published (Rules 51, 52, 115).
- Fee Structure: Rs 5,000 for inspection/applications; Rs 5/page for certified copies (Rule 119).
- Case Registers: Maintains registers for provisional appeals, inspections, and Supreme Court cases (Rule 59).
- Procedural Flexibility: Exemptions or deadline extensions allowed with sufficient cause (Rules 13-14).
- Abatement Provisions: Proceedings may abate for respondent’s death, insolvency, or company wind-up (Rule 44).
- Error Rectification: Registrar corrects arithmetical, grammatical, or clerical errors without notice (Rules 26, 108).
- Higher Court Orders: Supreme Court/High Court orders reviewed by President or same bench (Rule 117).
- Sittings Location: Held at Central Government-notified locations (Rule 7).
- Operating Hours: Sitting hours are 10:30 AM–1:30 PM, 2:30 PM–4:30 PM; office hours are 9:30 AM–6:00 PM (Rules 8-9).
- Additional Evidence: Allowed only with Tribunal approval for justice or sufficient cause (Rule 45).
Ensuring transparency and fairness
The rules prioritize transparency and integrity. "The proceedings under the rules will be open for public unless the tribunal has specifically limited its access," Niraj stated. He also highlighted ethical provisions: "The President or any Member recusing himself may record reasons for recusal; however, no party to the proceedings or any other person shall have a right to know the reasons for recusal." The Tribunal’s powers, akin to those under the Code of Civil Procedure, 1908, include summoning witnesses and enforcing attendance, ensuring legally binding outcomes, Niraj added.
The rules address procedural nuances, such as abatement of proceedings in cases of a respondent’s death, insolvency, or company wind-up, as Niraj noted. "Nothing in these rules shall be deemed to limit or otherwise affect the inherent powers of the Appellate Tribunal to make such orders or give such directions as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Appellate Tribunal," he emphasized, underscoring the Tribunal’s flexibility.
Implementation and challenges
The government is moving swiftly to operationalize the GSTAT. "The Government is expediting the appointment of judicial and technical members for both Principal and State benches of GSTAT, while the Goods and Services Tax Network (GSTN) is simultaneously developing the technology platform for processing appeals," Kothary confirmed.
However, digital access remains a concern. "The shift to a tech-driven, uniform Tribunal will expedite dispute resolution, reduce High Court litigation, and foster a predictable GST ecosystem, though challenges like digital access for smaller taxpayers remain," Chandwani added.
With a fee structure—Rs 5,000 for record inspection and applications, Rs 5 per page for certified copies—and standardized forms like GSTAT Form-01 and GSTAT Form-06, the rules ensure accessibility and uniformity.
