Section 109 – Constitution of Appellate Tribunal

-

Section 109 of CGST Act, 2017 – Constitution of Appellate Tribunal

Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant

1. Purpose of Section 109

Section 109 provides for the constitution of the Goods and Services Tax Appellate Tribunal (GSTAT), which is the second appellate authority under the GST law.

The Tribunal adjudicates appeals against orders passed by the Appellate Authority or Revisional Authority.

2. Statutory Provision – Section 109 (Overview)

Section 109(1):
The Government shall, on the recommendation of the Council, constitute a Goods and Services Tax Appellate Tribunal for hearing appeals against orders passed by the Appellate Authority or the Revisional Authority.

Section 109(2):
The Tribunal shall consist of:

  • A Principal Bench, and
  • Such number of State Benches and Area Benches as notified

3. Principal Bench of GST Appellate Tribunal

The Principal Bench:

  • Shall be located at New Delhi
  • Shall consist of:
    • President
    • Judicial Members
    • Technical Members (Centre)

The Principal Bench mainly handles:

  • Disputes involving place of supply
  • Inter-State supply issues

4. State Benches and Area Benches

State Benches and Area Benches:

  • Are constituted by notification
  • Exercise jurisdiction over specified areas
  • Hear appeals on matters other than place of supply

Each Bench generally consists of:

  • Judicial Member
  • Technical Member (State)
  • Technical Member (Centre)

5. Composition of Tribunal Members

The Tribunal comprises:

  • President – A person who is or has been a Judge of the Supreme Court or a Chief Justice of a High Court
  • Judicial Member – A person qualified as a High Court Judge or having prescribed judicial experience
  • Technical Member (Centre)
  • Technical Member (State)

6. Jurisdiction of GST Appellate Tribunal

The Tribunal has jurisdiction to hear appeals against:

  • Orders passed under Section 107
  • Orders passed under Section 108

It acts as the final fact-finding authority under GST.

7. Importance of Section 109

Section 109 is critical because:

  • It provides an independent judicial forum
  • Ensures uniform interpretation of GST law
  • Reduces burden on High Courts

8. Delay in Constitution – Practical Impact

Due to delay in constitution of GST Appellate Tribunal:

  • Taxpayers approached High Courts directly
  • Litigation costs increased
  • Statutory right of appeal was affected

Courts have directed governments to expedite Tribunal constitution.

9. Section 109 Read With Other Provisions

10. Key Legal Principle

The GST Appellate Tribunal is a statutory necessity and an integral part of the GST dispute resolution mechanism. Non-constitution of Tribunal cannot defeat the taxpayer’s right to appeal.

11. Practical Tip for Taxpayers

Always check:

  • Whether appeal lies before Tribunal or High Court
  • Jurisdiction of the appropriate Bench
  • Limitation period once Tribunal becomes functional

Disclaimer: This article is prepared for academic and professional reference based on the CGST Act, 2017 and prevailing legal position as applicable till date. Readers are advised to consult professionals before taking any action.

Comments

Post a Comment

Popular posts from this blog

CGST ACT, 2017 (Updated As on 31st Aug 2021)

-
Image
  AS ON 31.08.2021 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017) AS AMENDED BY THE:- ·         THE CENTRAL GOODS AND SERVICES TAX (EXTENSION TO JAMMU AND KASHMIR) ACT, 2017 (NO. 26 OF 2017); ·         THE FINANCE ACT, 2018 (NO. 13 OF 2018); ·         THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (NO. 31 OF 2018); ·         THE FINANCE (NO. 2) ACT, 2019 (NO. 23 OF 2019); ·         THE FINANCE ACT, 2020 (NO. 12 OF 2020); ·         THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020; ·         THE FINANCE ACT, 2021 (NO. 13 OF 2021). Note: This updated version of the Central Goods and Services Tax Act, 2017 as amend...
Read more

Rate of GST on Works Contract Services w.e.f. 01 Jan 2022

-
  W.e.f. 01 st Jan 2022 the rate of GST on works contract services for specific contract provided to government authority and government entities will be changed.   Tax Rate On or Before 31.12.2021   1.       For Works Mentioned In Item(iii) And (vi) GST Rate Was 12% For Providing Services To Central Government/State Government/Union Territory/Local Authority/ Governmental Authority/ Govt Entity And 18% For Providing Services To Others.   2.       For Works Mentioned In Item (iv) ,(v) And (viii) GST Rate Was 12% For Providing Services To Any Body.     3.       For Works Mentioned In Item (vii) GST Rate Was 5% For Providing Services To Central Government/State Government/Local Authority/ Governmental Authority/ Govt Entity And 18% For Providing Services To Other.   The same is notified by the government vide notification no 11/2017, 20/2017, 24/2017 and 3...
Read more

Input Tax Credit Cannot Be Denied to Bona Fide Buyer Due to Supplier’s Bogus Billing & Retrospective GST Registration Cancellation – Legal Position, Case Laws & Remedies

-
Input Tax Credit Cannot Be Denied to Bona Fide Buyer Due to Supplier’s Bogus Billing & Retrospective GST Registration Cancellation – Legal Position, Case Laws & Remedies Introduction A recurring and high-stakes dispute under GST is denial of Input Tax Credit (ITC) to a genuine recipient merely because the supplier’s GST registration is cancelled retrospectively on allegations of bogus billing / fake invoicing. In many cases: The recipient purchased goods or availed services in the normal course of business Full payment including GST was made through banking channels ITC is reflected in GSTR-2A / GSTR-2B Later, the supplier’s registration is cancelled ab initio alleging fake billing The department issues a Show Cause Notice (SCN) proposing ITC reversal, interest and penalty This article explains: What the CGST Act, 2017 and Rules actually provide Whether ITC can be denied to a bona fide purchaser Supreme Court and High Court jurisprudence (in favour and against) Action steps to ...
Read more