Lok Sabha Approves Overhaul of CGST Act: Advocates Now Eligible for Tax Tribunal Roles

In a significant move, the Lok Sabha passed the Central Goods and Services Tax (CGST) (Second Amendment) Bill, 2023, ushering in a transformative change to the existing CGST Act of 2017. The amendment, introduced by the Central government on December 13, garnered attention for its alignment with the recommendations of Chief Justice of India (CJI) DY Chandrachud.

Finance Minister Nirmala Sitharaman explained the impetus behind the amendment, stating, "The CJI underscored that certain aspects of the service terms did not align with the Tribunal Reforms Act." Responding to this, the proposed legislation aims to broaden the pool of eligible candidates for judicial roles within the Goods and Service Tax Appellate Tribunals (GSTAT). Advocates with a decade of experience will now qualify for these positions, marking a departure from the previous criteria limited to former High Court judges, district judges with potential High Court appointments, or members of the Indian Legal Service with specific administrative experience.

Crucially, the Bill introduces a minimum age requirement of 50 years for appointment as a member or President of the Tribunal. Additionally, it adjusts the age limit, extending the term for the President from 67 to 70 years and for members from 65 to 67 years. Sitharaman emphasized, "The provisions of the CGST Act are being aligned with the Tribunal Reforms Act, 2021, to initiate the administrative process for the operationalization of the GSTAT at the earliest."

This legislative move not only addresses the need for modernization but also enhances inclusivity in the selection process for tax tribunal members, a critical step in ensuring a diverse and experienced panel to adjudicate complex tax matters.

Author: Anushka Taraniya

News Writer, MIT ADT University