Decoding GSTAT – Early Trends From Select Decisions

The establishment of the Goods and Services Tax Appellate Tribunal (GSTAT) marks a major milestone in resolving GST disputes. Early rulings demonstrate key emerging judicial trends across four areas:

• Procedural errors vs. evasion: Penalties under section 129 require intent to evade; genuine procedural defaults backed by documentary proof receive relief.
• Procedural discipline: Statutory time limits, such as section 129(3)'s seven-day order limit, are strictly jurisdictional.
• Legacy issues: Transitioned credits must be examined under erstwhile laws, with CESTAT remaining the proper forum for section 142(3) appeals.
• Substantive provisions: Benches are prioritising substance-over-form, including allowing inverted duty structure refunds for ancillary packing materials

INTRODUCTION

The establishment of the Goods and Services Tax Appellate Tribunal (GSTAT) marks a significant milestone in the administration of GST law. For nearly a decade, a taxpayer aggrieved by an order of the First Appellate Authority had no option but to approach the High Court under Article 226 of the Constitution of India. That arrangement burdened the constitutional courts with intensely factual and technical tax d