In a decision which will provide an essential alleviation for industry for the arbitration of indirect tax disputes, the government has informed the rules of the court of appeal on goods and services (GSTAT) (procedure) which allow online deposits, hybrid hearings and the list of cases on an urgent basis.
According to the notification, the rules come into force from April 24, 2025 and the portal of the TPS Appeal Court is already posted. Currently, this shows that two users have already been recorded, a defender has been recorded and an online call lodged.
Now, all calls, applications and documents must be submitted digitally to the GSTAT portal, with electronic treatment and reviews. The hearings can be in person or online, as approved by the president of the court.
He also established strict deadlines and said that urgent calls placed at noon can be listed on the next working day and that late deposits at 3 p.m. can also be listed with permission the following working day.
Respondents will have to respond within one month and candidates may also file a replica within one month. The court will be ordered ordered within 30 days from the date of the final hearing, excluding vacation.
The court will stay every working day from 10:30 a.m. to 1:30 p.m. and 2:30 p.m. to 4:30 p.m., with possible extensions while the office will remain open from 9 a.m. to 6:00 p.m. on working days.
A list of daily causes will be published online and on opinion councils, prioritization of order declarations, clarifications and admissions.
The GSTAT is the Appeal Authority under the 2017 TPS law to hear calls on tax disputes against the orders adopted by the authorities of appeal or revision. Its main bench is based in New Delhi and has 31 state benches located across the country, with sessions in 44 different places.
The center had appointed (RETD) Sanjaya Kumar Mishra as the first president of the GSTAT in May 2024.
Experts have praised the notification of the rules based on online deposits and aim to reduce delays, which would contribute to a faster resolution of disputes. Saurabh Agarwal, tax partner, EY said that the rules reflect a clear intention to rationalize dispute resolution and reduce procedural delays. “This is a major front step in strengthening the confidence of taxpayers and the modernization of the indirect tax disputes framework of India,” he said.
Sandeep Sehgal, partner-tax, AKM Global, said that the rules set a complete and rationalized procedure for the functioning of the GSTAT, which is a critical cog in the mechanism of disputes of TPS. “With 15 structured chapters, the rules detail the institution and admission procedures, the conduct of hearings, electronic deposit and the elimination of cases in a time linked to time and efficient,” he noted.
Sivakumar Ramjee, indirect executive-tax director, Nangia Andersen LLP, stressed that regional benches through the states will guarantee that justice is no longer a distant destination, literally. “A Coimbatore taxpayer does not need to wait for Delhi to be heard,” he said.
In addition, the rules also tighten the door. Only the authentic cases, supported by a pre-depot and a clear cause, will reach the court, he noted, adding that this reduces frivolous deposits and rationalizes the file for faster results. A structured and impartial selection process for members still improves credibility and equity
