Bill to amend Central Goods and Services Tax Act introduced in Lok Sabha

New Delhi: A Bill to align the provisions of the Central Goods and Services Tax Act with the Tribunals Reform Act to introduce administrative procedure for operating Goods and Services Tax Appellate Tribunals was introduced in the Lok Sabha on Wednesday.

The Central Goods and Services Tax (Second Amendment) Bill, 2023 was introduced in the Lok Sabha by Finance Minister Nirmala Sitharaman.
The Bill seeks to amend the Central Goods and Services Tax Act, 2017.

According to the Statement of Objects and Reasons of the Bill, section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for the constitution of the Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax . Service Tax Framework for hearing appeals against orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and State Goods and Services Tax Act.

It said that due to non-constitution of Goods and Services Tax Appellate Tribunals, taxpayers are being deprived of the second appellate remedy and as a result taxpayers are directly seeking relief from the High Court, thereby burdening the High Courts.

Amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 to enable the creation of the Central Goods and Services Tax Appellate Tribunal were notified in July this year.

“During the process of operationalization of the said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunals Reform Act, 2021 (33 of 2021). “The provisions of the Central Goods and Services Tax Act, 2017 are being combined with the Tribunals Reforms Act, 2021 to initiate the administrative process for operationalizing the Goods and Services Tax Appellate Tribunals at the earliest.”