Govt sets timelines for GSTAT appeals, paving way for quicker tax dispute resolution

The government has notified timelines for filing appeals before the long-awaited Goods and Services Tax Appellate Tribunal (GSTAT), marking a decisive step toward resolving years of uncertainty in indirect tax litigation.

As per the notification, appeals against orders communicated before April 1, 2026, can be filed until June 30, 2026. For orders communicated on or after April 1, 2026, taxpayers must file appeals within three months of receiving the order.



Why this matters

Since the rollout of GST in 2017, businesses lacked a dedicated appellate forum to challenge tax orders. Disputes piled up in High Courts, straining judicial resources and leaving taxpayers in limbo with blocked working capital and mounting legal costs.

With the Tribunal now operational, both industry and government expect a more streamlined process, easing court pressure and ensuring quicker justice.

“The notifications operationalising the GST Appellate Tribunal are nothing short of a game-changer for India’s indirect tax landscape,” said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.

“For years, taxpayers were stuck in a vacuum with appeals piling up, cash flows locked, and litigation costs escalating. That vacuum now ends with clear timelines,” he added.

Uniformity and expert handling

Tax experts say GSTAT will fill a critical gap in India’s tax framework.

“This move not only addresses a longstanding void in the GST architecture but also marks a turning point in how disputes will be resolved,” said Abhishek A Rastogi, Founder, Rastogi Chambers.

“The GSTAT will bring much-needed certainty and uniformity to the interpretation of GST laws across the country. Its specialised composition, with judicial and technical members, ensures appeals are handled by experts who understand the nuances of this complex system. This will lead to more consistent and equitable outcomes,” he explained.

Rastogi added that the Tribunal offers businesses a faster, more accessible, and less expensive avenue for dispute resolution. “The clear deadlines, especially the specific window until June 30, 2026, for older cases, require immediate attention from taxpayers with pending disputes. They must review their cases, prepare documentation, and meet deadlines to avoid missing this critical opportunity. This reform will significantly improve the ease of doing business in India,” he said.



Widened jurisdiction

The Principal Bench of the Tribunal will not only hear anti-profiteering disputes but also cases involving ISD (Input Service Distributor) credit distribution, common questions of law before multiple benches, and complex IGST issues such as online gaming and OIDAR services.

“This widened jurisdiction will help reduce contradictory rulings and unlock blocked capital for businesses,” said Mishra, calling it a sign of the GST regime’s growing maturity.



Transitional breathing space

Tax practitioners note that the notification balances clearing the backlog of cases with enforcing discipline in future litigation.

“The notification provides much-needed clarity on the timeline for filing appeals before the newly constituted GST Appellate Tribunal,” said Rajat Mohan, Senior Partner, AMRG & Associates.

“By notifying June 30, 2026, as the cut-off for appeals against orders communicated before April 1, 2026, the government has allowed ample breathing space for taxpayers awaiting the Tribunal’s operationalisation. This ensures no litigant is denied the statutory right of appeal due to delays in setting up the forum,” he explained.

He added that requiring appeals to be filed within three months of communication for orders after April 1, 2026, “brings certainty and aligns the GST appellate framework with principles of timely justice and limitation law.”



Impact on government and courts

For the government, GSTAT is expected to cut litigation costs and ease the burden on High Courts and the Supreme Court, which have been flooded with GST-related appeals for eight years. For businesses, it promises predictability, quicker resolution, and release of blocked working capital.

Industry watchers see the notification as not just procedural but a structural reform that will boost ease of doing business and strengthen faith in a rule-based tax regime.

“When the Tribunal rules in favour of a taxpayer, the pre-deposit amount will be promptly refunded, releasing crucial funds back into the economy. Furthermore, the proposed reduction of the pre-deposit from 20% to 10% is a huge step in making the appellate process more accessible, especially for SMEs,” added Rastogi.