Key Indirect Tax Notifications: GSTAT Principal Bench Constitution and Section 73(9) Time Limit Extension
The Central Government and CBIC issued two significant indirect tax notifications at the start of 2024 — one formally constituting the Principal Bench of the GST Appellate Tribunal (GSTAT) in New Delhi, and another extending the time limits for issuance of Show Cause Notices and passing of orders under Section 73(9) of the CGST Act for FY 2018-19 and FY 2019-20. Both notifications carry direct compliance and litigation implications for businesses operating under India’s GST and indirect tax advisory framework.
Constitution of the Principal Bench of the GST Appellate Tribunal (GSTAT) in New Delhi
The Central Government, vide Notification No. S.O. 1(E) dated 1 January 2024, formally notified the constitution of the Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) in New Delhi, exercising powers under Section 109(3) of the Central Goods and Services Tax Act, 2017. This notification supersedes the earlier Notification No. S.O. 1359(E) dated 13 March 2019, while preserving the validity of actions taken thereunder.
The constitution of the GSTAT Principal Bench is a significant development for GST dispute resolution in India. The Tribunal functions as the appellate forum for disputes arising from orders passed by the Appellate Authority under GST, providing taxpayers with a formal statutory avenue for contesting adverse orders beyond the first level of appeal. With the GSTAT now operational, businesses with pending GST demands, unresolved appeals, or anticipated disputes are encouraged to assess their position and explore GST advisory and compliance support to evaluate the merit and strategy of their cases before the Tribunal.
Source: Official Gazette Notification — GSTAT Constitution
Extension of Time Limit for SCN and Orders Under Section 73(9): Notification No. 56/2023-CT
CBIC issued Notification No. 56/2023-Central Tax dated 28 December 2023, extending the time limit for issuance of orders under Section 73(9) of the CGST Act for recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized for FY 2018-19 and FY 2019-20.
The extended timelines notified were as follows:
- FY 2018-19: Time limit for passing orders under Section 73(9) extended to 30 April 2024. Accordingly, Show Cause Notices could be issued up to 31 January 2024.
- FY 2019-20: Time limit for passing orders under Section 73(9) extended to 31 August 2024. Accordingly, Show Cause Notices could be issued up to 31 May 2024.
It is important to note that Notification No. 56/2023-CT has subsequently been the subject of judicial challenge. The Hon’ble Gauhati High Court, in the case of Jawahar Singh v. Union of India (W.P. (C) No. 4681 of 2024, decided in September 2024), held that this notification was not in consonance with Section 168A of the CGST Act, which requires a prior recommendation of the GST Council before any such extension can be issued. The court further held that all consequential actions including orders passed relying on the extended timeline would be legally unsustainable if the underlying notification itself could not withstand scrutiny.
Businesses that received Section 73(9) demand orders for FY 2018-19 or FY 2019-20 within the extended timelines under this notification may have grounds to challenge such orders. Structured GST appeal and litigation support can help assess the legal position and available remedies in light of this judicial development.
Source: CBIC Notification No. 56/2023-CT — cbic.gov.in
Additional Resources
For further reading on related GST tribunal, litigation, and indirect tax notification topics, the following MBG insights may be useful: