The GST Appellate Tribunal (GSTAT) has overhauled how GST appeals are processed, requiring pending and new cases to be reviewed by a division bench before assignment to a single bench. The rule targets disputes involving significant legal questions, aiming for consistent rulings and faster resolution. Cases under ₹50 lakh without legal issues may go straight to a single bench, but only with president or vice-president approval, and any later legal question forces referral back to the division bench. GSTAT also categorized disputes into three hearing tracks and set bench rosters with virtual, hybrid and circuit options across states and UTs.
An ITAT Mumbai ruling granted a woman a Rs 1.49 crore interest deduction after she borrowed money to invest in a venture capital fund. The Income Tax Department had rejected her claim, but the tribunal allowed it, pointing to consistent acceptance of similar deductions and holding that she provided adequate evidence the borrowed funds were used to generate income.
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The Supreme Court will examine whether GST applies when companies pay municipal bodies for restoring roads after utility work. It comes after a Gujarat High Court ruled these reimbursements are not taxable services. Now the apex court has asked Torrent Power to respond to a GST department appeal challenging that interpretation.
Automated processes under GST are driving a sharp rise in disputes, with show-cause notices being issued to taxpayers largely based on data available on GSTN—without meaningful intervention from tax officers. The result is more litigations and longer legal timelines as businesses face actions triggered by system-generated information rather than case-by-case scrutiny.
GST Appellate Tribunals (GSTAT) are designed to hear appeals against orders from GST appellate or revisional authorities. While this structure aims to improve dispute resolution, the question remains whether it can meaningfully reduce the swelling backlog of GST-related cases, given how disputes move through multiple decision layers before reaching GSTAT.
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