CGST Act Section 109
Legal framework establishing the GST Appellate Tribunal and defining its jurisdiction
What is Section 109 of the CGST Act?
What does Section 109 of the CGST Act, 2017 do?
💡 The Tribunal's jurisdiction, powers and authority are exercised through the Principal Bench and the State Benches.
Where is the Principal Bench of GSTAT located?
💡 State Benches are constituted separately under sub-section (4), on the request of the State and at places recommended by the Council.
Who are the members of the Principal Bench?
How is a State Bench composed?
💡 State Benches are constituted with such number and jurisdiction as recommended by the Council.
When can a single Member hear an appeal?
💡 In all other cases the appeal is heard together by one Judicial Member and one Technical Member.
Which matters are heard only by the Principal Bench?
- cases where any one of the issues involved relates to the place of supply;
- matters referred under sub-section (2) of section 171;
- other cases or class of cases the Government may notify on the recommendations of the Council.
Against which orders can an appeal be filed before GSTAT?
💡 GSTAT functions as the second level of appeal in the GST dispute resolution mechanism.
Who distributes cases among the Benches?
Who acts as Vice-President of the State Benches?
What happens if the Members differ in their opinion?
Can Members be transferred between Benches?
Does a vacancy affect the Tribunal's proceedings?
Section 109 of the Central Goods and Services Tax Act, 2017 (cgst-act-section-109) provides the legal foundation for establishing GSTAT as the Appellate Tribunal for deciding appeals filed under Section 112 (cgst-act-section-112), arising from orders passed by Appellate Authorities under Section 107 (cgst-act-section-107) and Revisionary Authority under Section 108 (cgst-act-section-108). Section 111 grants GSTAT the same powers as a civil court for specific matters, while Section 112 governs the appeal filing procedures.
(1) The Government shall, on the recommendations of the Council, by notification, establish with effect from such date as may be specified therein, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority, or for conducting an examination or adjudicating the cases referred to in sub-section (2) of section 171, if so notified under the said section.
(2) The jurisdiction, powers and authority conferred on the Appellate Tribunal shall be exercised by the Principal Bench and the State Benches constituted under sub-section (3) and sub-section (4).
(3) The Government shall, by notification, constitute a Principal Bench of the Appellate Tribunal at New Delhi which shall consist of the President, a Judicial Member, a Technical Member (Centre) and a Technical Member (State).
(4) On the request of the State, the Government may, by notification, constitute such number of State Benches at such places and with such jurisdiction as may be recommended by the Council, which shall consist of two Judical Members, a Technial Member (Centre) and a Technical Member (State).
(5) The Principal Bench and the State Bench shall hear appeals against the orders passed by the Appellate Authority or the Revisional Authority:
Provided that the cases in which any one of the issues involved relates to the place of supply, shall be heard only by the Principal Bench.
Provided further that the matters referred to in sub-section (2) of section 171 shall be examined or adjudicated only by the Principal Bench:
Provided also that the Government may, on the recommendations of the Council, notify other cases or class of cases which shall be heard only by the Principal Bench.
(6) Subject to the provisions of sub-section (5), the President shall, from time to time, by a general or special order, distribute the business of the Appellate Tribunal among the Benches and may transfer cases from one Bench to another.
(7) The senior-most Judicial Member within the State Benches, as may be notified, shall act as the Vice-President for such State Benches and shall exercise such powers of the President as may be prescribed, but for all other purposes be considered as a Member.
(8) Appeals, where the tax or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not exceed fifty lakh rupees and which does not involve any question of law may, with the approval of the President, and subject to such conditions as may be prescribed on the recommendations of the Council, be heard by a single Member, and in all other cases, shall be heard together by one Judicial Member and one Technical Member
(9) If, after hearing the case, the Members differ in their opinion on any point or points, such Member shall state the point or points on which they differ, and the President shall refer such case for hearing:
(a) where the appeal was originally heard by Members of a State Bench, to another Member of a State Bench within the State or, where no such other State Bench is available within the State, to a Member of a State Bench in another State;
(b) where the appeal was originally heard by Members of the Principal Bench, to another Member from the Principal Bench or, where no such other Member is available, to a Member of any State Bench,
and such point or points shall be decided according to the majority opinion including the opinion of the Members who first heard the case.
(10) The Government may, in consultation with the President, for the administrative efficiency, transfer Members from one Bench to another Bench:
Provided that a Technical Member (State) of a State Bench may be transferred to a State Bench only of the same State in which he was originally appointed, in consultation with the State Government.
(11) No act or proceedings of the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Appellate Tribunal.