No GSTAT, Delayed Meetings: What Ails GST Council

Collections under this tax structure have steadily increased — at Rs 2.01 lakh crore, it crossed the Rs 2 lakh crore mark in May for the second consecutive month. Notably, India’s GST collections had touched an all-time high of Rs 2.37 lakh crore in April 2025. In comparison, the gross collections in 2017-18 stood at a mere Rs 7.19 lakh crore. 

However, along with increased collections, the number of disputes has surged as well. Intricacies in filing and adhering to compliance have added to the problem, leading to a surge in disputes and litigation.

GST Challenges, GSTAT Woes

While the much-awaited Goods and Services Tax Appellate Tribunal (GSTAT) was put in place in April 2024, after the government notified it intending to handle litigations and resolutions effectively, it is yet to become fully operational.

The absence of an effective dispute mechanism has forced several firms and taxpayers to take matters to the courts, which has led to delays in resolution and cost escalation. 

In an interview with The Secretariat, Najib Shah, former chief of the Central Board of Indirect Taxes and Customs (CBIC), said that an effective mechanism for resolving such disputes is critical. “Disputes have been piling up, and this causes worries for businesses. This is one area that needs immediate attention,” Shah said.

While the GST structure was aimed at simplifying the indirect tax framework, taxpayers complain that filing tax returns under the new regime has become more complex. Frequent changes in the tax structure have resulted in confusion, leading to the disputes.

The dispute mechanism remains patchy, with the micro, small, and medium enterprises (MSMEs) the worst-impacted.

GST Council Meetings Not Held Regularly

The GST Council, led by the country’s Finance Minister, is the constitutional body responsible for amending and enacting norms under the tax structure. The 56th GST Council meeting is set to take place over the next few days. This will be the first such meeting in 2025.

The last GST Council meeting was held in December 2024. In 2024, the Council had met thrice. At the time of the launch, it was decided that the council would meet once every quarter to thrash out issues.   

“This year, the GST Council is yet to hold its first meeting. If these meetings are not held on time, decision making suffers. This is worrisome for industry,” a senior government official said, adding that the delay in meetings has multiplied problems.

“Issues which need to be sorted out now take a long time, and this is another issue plaguing the industry,” he said.

For example, the insurance sector has been demanding that the GST rate on insurance products be brought down from the current 18 per cent. While many have suggested that the GST rate needs to be slashed to 5 per cent, others feel that it should be made nil, a move that will push more Indians to buy insurance products. A decision on this key issue has long been pending.