GST Tribunal May Face Delay; Relaxed Eligibility Criteria could Invite Legal Challenges

The recent relaxations in the eligibility criteria for Member (Technical) by states like UP, Rajasthan, and Odisha, along with the designation of Joint Commissioner instead of Additional Commissioner in Maharashtra, may raise further litigations and potentially delay the functioning of the Goods and Services Tax Appellate Tribunal (GSTAT).

These potential litigations may arise on the grounds that the state relaxations are in variance with the principles enshrined by the Hon’ble Madras High Court.

Key points from the ruling that seem deviated by these relaxations:

— Qualifications of Members: The court struck down provisions allowing less qualified individuals to serve as judicial members, highlighting the need for members to have adequate legal training and experience. Relaxing criteria for technical members undermines this standard.

— Independence and Impartiality: The tribunal must inspire confidence in its independence and impartiality. Lowering eligibility criteria for technical members could erode public trust and create a perception of bias.

— Complex Legal Interpretations: The tribunal’s decisions involve complex legal interpretations. Lowering the bar for technical members could compromise the quality and fairness of these decisions.

The Hon’ble High Court, while striking down certain provisions of the CGST law earlier, held that adherence to these principles is essential to maintain the integrity and effectiveness of GSTAT.

Let’s hope for no further delay!!