GSTAT Powers and Authority under Section 113 of the CGST Act, 2017
GSTAT Powers and Authority under Section 113 of the CGST Act, 2017
The Goods and Services Tax Appellate Tribunal (GSTAT) is established to create a centralized appellate forum for GST-related disputes, thereby reducing the burden on High Courts, ensuring uniform interpretation of GST laws across India, and facilitating faster resolution of tax matters to provide timely relief to taxpayers. The GSTAT functions as the final fact-finding authority under the GST framework, subject only to appeals on substantial questions of law.
The GSTAT, in terms of Section 113 of the CGST Act, 2017, is vested with comprehensive powers to pass orders effectively deciding the appeals filed under the provisions of Section 112 of the CGST Act, 2017 read with Rule 110 of the CGST Rules, 2017.
The practical implications of these powers, particularly given GSTAT’s position as the final fact-finding authority, are discussed later in this blog.
Under Section 113 of the CGST Act, 2017, the GSTAT is vested with three distinct categories of powers: (a) powers to pass substantive orders; (b) powers equivalent to those of a civil court; and (c) procedural powers to regulate its own proceedings, the extent of which is set out hereinafter.
Powers to Pass Orders
In terms of Section 112 of the CGST Act, 2017, an appeal can be filed before the GSTAT challenging Orders passed by the First Appellate Authority under Section 107 of the CGST Act, 2017 or Orders passed by the Revisionary Authority under Section 108 of the CGST Act, 2017.
In terms of Section 113 of the CGST Act, 2017, the GSTAT has the powers to pass the orders deciding the appeals filed under Section 112 of the CGST Act, 2017, after giving the parties to the appeal an opportunity of being heard. In terms of Section 113 of the CGST Act, 2017, the GSTAT can pass any orders as it thinks fit, resulting in:
- Confirmation of the order against which the appeal has been preferred under Section 112 of the CGST Act, 2017;
- Modification of the order against which the appeal has been preferred under Section 112 of the CGST Act, 2017;
- Annulment of the order against which the appeal has been preferred under Section 112 of the CGST Act, 2017;
- Fresh adjudication / Re-adjudication by way of the matter being referred back to the Appellate Authority, or the Revisional Authority, or the original adjudicating authority with such directions as the GSTAT may think fit.
It is imperative to note that the GSTAT must pass an order under Section 113 of the CGST Act, 2017 only after providing sufficient opportunity of hearing to both the parties in the Appeal. The GSTAT also has the power to grant adjournment not more than three times during the hearing of the appeal.
In terms of Section 113(3) of the CGST Act, 2017, the GSTAT also has the power to amend any orders passed by it so as to rectify any errors apparent on the record within a period of three months from the date of order. This discretionary power may be exercised by the GSTAT either on its own accord or upon being brought to its notice by either of the parties to the Appeal.
The GSTAT must endeavour to hear and decide every appeal filed under Section 112 of the CGST Act, 2017 within a period of one year from the date of filing the said appeal. This stipulation of passing an order within a period of one year is however not mandatory.
Any order passed by the GSTAT under Section 113 of the CGST Act, 2017 would be final and binding on the parties to the Appeal subject to the provisions of Section 117 of the CGST Act, 2017 (Appeal to High Court) and Section 118 of the CGST Act, 2017 (Appeal to Supreme Court). Hence, an order passed by the GSTAT being the last fact finding authority would be final and binding on the relevant parties.
Powers of GSTAT Equivalent to a Civil Court under Section 111 of the CGST Act
In terms of Section 111 of the CGST Act, 2017, the GSTAT, while disposing of any proceedings or appeals before it, though not bound by the procedure laid down in the Code of Civil Procedure, 1908, is however guided by the principles of natural justice and has the power to regulate its own procedure, subject to the provisions of the CGST Act, 2017 and the rules made thereunder. The GSTAT is vested with powers equivalent to those of a Civil Court under the Code of Civil Procedure, 1908, and these powers are further codified in the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025.
These powers inter alia include - (a) Receiving evidence on affidavits; (b) Summoning and examining witnesses; (c) Requisitioning any public record or document; (d) Requiring discovery and production of documents; (e) Issuing Commissions for the examination of witnesses and documents; (f) Dismissing applications for default; (g) Setting aside orders passed ex parte; (g) Reviewing its own decisions etc.
Further, as per the provisions of Section 111(3) of the CGST Act, 2017, an order passed by the GSTAT under Section 113 of the CGST Act, 2017 can be enforced by treating the said order equivalent to a decree passed by a Civil Court in a suit. Also, all the proceedings before the GSTAT are deemed to be judicial proceedings as envisaged in Section 111(4) of the CGST Act, 2017.
Procedural Powers
Under the provisions of the CGST Act, 2017 read with the GSTAT (Procedure) Rules, 2025, the GSTAT is vested with significant procedural powers to ensure appeals are effectively decided, enabling it to manage proceedings, address procedural lapses, and resolve disputes on merits. These powers inter alia include the authority to regulate its own procedure, extend time limits prescribed under the rules, and condone delays where sufficient cause is shown. The Tribunal shall also constitute larger benches when there is a difference of opinion among the Members of a Bench while hearing an appeal, in order to decide important questions of law or matters of substantial significance.
Practical Application
In light of the extensive powers vested with the GSTAT and the constraints imposed by Section 117 of the CGST Act, 2017, it is important to note that while an appeal against an order of a State Bench of GSTAT lies before the High Court, such appeal can only be admitted if it involves a substantial question of law. This limitation effectively makes GSTAT the final authority on issues involving questions of fact, as the High Court’s jurisdiction is narrowly confined.
Given this position, it is strongly advisable that appeals before GSTAT are drafted with utmost comprehensiveness, elucidating all the relevant facts. This includes, producing every relevant document to substantiate the case; summoning witnesses where their testimony can strengthen factual arguments; preparing robust evidence and well-structured arguments to address all possible factual and legal aspects; and requesting appropriate reliefs clearly and specifically to avoid ambiguity. A meticulously prepared appeal ensures that all factual contentions are fully presented before the GSTAT.
Conclusion
GSTAT’s extensive powers enable it to deliver comprehensive dispute resolution while ensuring judicial discipline and procedural fairness. By combining flexibility in procedure with authority equivalent to a civil court, GSTAT serves as a critical forum for fact-based orders and consistent interpretation of GST law.
Legal Disclaimer
This blog is meant for informational purpose only and does not purport to be advice or opinion, legal or otherwise, whatsoever. The information provided is not intended to create an attorney-client relationship and is not for advertising or soliciting. Lakshmikumaran & Sridharan or its associates are not responsible for any error or omission in this update or for any action taken based on its contents