Since the inception of GST in 2017, several cases have not attained finality due to the non-constitution of the GST Appellate Tribunal. Orders were passed, and appeals were filed, but the principal forum for adjudicating disputes—the GST Tribunal—was not operational. Matters pending before the GST Tribunal include issues such as road vigilance actions, which have resulted in demands relating to e-way bill compliance during the initial years. With audits, investigations, and proceedings culminating in demand orders during the later phase of GST implementation, many such matters have progressed to the first appellate stage, where demands have been upheld. These matters are pending before the GST Tribunal for adjudication on questions of law and facts.

In most parts of the country, the GST Appellate Tribunal has now begun accepting appeals, with benches being constituted to hear matters. This is a significant step toward solving long-pending GST disputes. This development is crucial for businesses to plan their appeal filings within the prescribed timelines. It is relevant to note that the GST Tribunal prescribes an outer limit for condoning delays in filing appeals, a feature that was absent in the erstwhile Customs, Excise, and Service Tax Tribunal.

GST is a paradigm shift in the taxation regime. As the law is relatively new, many unresolved issues have given rise to varied interpretations by different High Courts, particularly in matters where writ jurisdiction was exercised by taxpayers. It is important to distinguish between binding High Court judgments and those that merely grant relief to the concerned petitioners without laying down a ratio. These judgments will be tested for their applicability once the GST Tribunal starts functioning. However, where High Courts have clearly laid down the law, the Tribunal is bound to follow such judgments. This article attempts to highlight key areas of consideration and caution for businesses as they move toward the GST Tribunal.

1. GST Disputes Are Entering the “Final Fact-Finding” Stage

The GST Tribunal is not merely another rung in the appellate ladder. It is the last authority on facts.

Once a dispute crosses this stage, High Courts will generally interfere only on questions of law, not on factual appreciation. Errors in facts, incomplete evidence, weak narratives, or careless admissions made earlier become extremely difficult, often impossible to correct later.

In practical terms, this means:

a. Facts crystallise here
b. Evidence gets its final evaluation
c. The story of the case gets frozen

If your factual foundation is weak at the Tribunal stage, no amount of legal brilliance later can fully repair it.

2. Appeals Will No Longer Be Procedural Formalities

Many GST appeals so far have been treated as extensions of replies to show cause notices filed mechanically, with generic grounds and copied submissions.

That approach may not help in the Tribunal.

The Tribunal demands:

a. A clear case theory

b. Logical sequencing of events

c. A persuasive narrative supported by documents

d. Alignment between facts, numbers, and law

This is a shift from “reply culture” to litigation craftsmanship. Casual filings, templated grounds, and unfocused arguments will be dismantled under scrutiny.

3. Old GST Notices Are Becoming Today’s Appeals

Notices issued between 2018 and 2023, often treated lightly at the time, are now maturing into full-fledged appeals before the Tribunal.

Many of these cases suffer from:

a. Incomplete replies
b. Poor documentation
c. Assumptions that “we’ll handle it later.”

Unfortunately, “later” is now. And the Tribunal will not judge what should have been done; it will judge what actually exists on record.

Legacy errors that once looked harmless are suddenly decisive.

For instance, in 2019, a company received a notice for a mismatch between GSTR-3B and GSTR-2A. It replied casually as a “clerical error”. No reconciliation was prepared and kept ready. Now, in 2026, the matter stands before the Tribunal. By this stage, reconciliations and a clear explanation should be available for submission to the Tribunal, if required. Therefore, it is important to recheck and ensure the accuracy of facts, reconciliations, and tax positions.

4. Documentation Will Decide Outcomes, Not Just Law

In GST Tribunal matters, the law often supports more than one interpretation. What separates winners from losers is documentation.

Tribunal members examine:

a. Contracts and commercial understanding

b. Invoice structures and tax positions

c. Reconciliations between returns and books

d. Internal workings and calculations

A legally strong argument collapses instantly if even one documentary link is missing. The Tribunal looks for substance, not sympathy.

Consider a situation where a government contractor claims a GST rate of 12%. It’s lawful. However, if the contractor is unable to produce agreements, work completion reports, invoice copies, and evidence of their acceptance, it would be difficult to sustain the claimed rate of 12%, especially in light of changes made to GST rates in this sector.

5. Numbers Will Be Cross-Examined Like Never Before

GST litigation at the Tribunal stage is intensely numerical.

Expect scrutiny of:

a. Turnover declarations

b. Input tax credit claims and reversals

c. Rate applications

d. GSTR-1 vs GSTR-3B vs books triangulation

Inconsistencies, however small, are magnified. A difference unexplained becomes an allegation. A mismatch unaddressed becomes an admission.

Numbers here are not supportive material; they are witnesses under cross-examination.

6. Many Businesses Don’t Know Their Case Is Weak

One of the most dangerous realities today is false confidence.

Many businesses:

a. Filed replies without a strategy

b. Made admissions without realising their implications

c. Missed critical grounds at lower stages

What is not argued earlier often cannot be invented later. The Tribunal is not a forum to reinvent the case; it is a forum to test it.

By the time businesses realise their case is weak, it is often too late to rebuild.

7. Tribunal Appeals Demand a Completely Different Skill Set

GST compliance skills and GST litigation skills are not the same.

Tribunal matters require:

a. A litigation mindset, not a return-filing mindset

b. Ability to read adjudication orders critically and be on top of the facts of the case and the chronology of events

c. Identification of jurisdictional, limitation, and procedural lapses

d. Structuring grounds logically instead of quoting sections mechanically

This is closer to advocacy than compliance.

8. Professional Involvement Is No Longer Optional

Tribunal appeals are:

a. Technical
b. Time-bound
c. Irreversible

There is usually only one real opportunity to present the full factual and legal picture. A poorly drafted appeal does not just lose the present year; it can damage future years.

The cost of a wrong appeal is almost always higher than the cost of the right advice.

9. Delay Today Means Damage Tomorrow

Tribunal limitation periods are strict. Unlike some earlier stages, delay condonation is not a comfort blanket.

Add to that:

a. Records deteriorate
b. Key employees move on
c. Institutional memory fades

A case that is not prepared today becomes exponentially weaker tomorrow.

As the GST Tribunal is empowered to condone delays only up to three months, it will not be able to accommodate any delay beyond this period.

10. Strategic Review before Filing Is the Real Value

Not every issue deserves to be contested. One of the most underrated skills in Tribunal litigation is strategic pruning.

A mature approach involves:

a. Deciding what to contest and what to concede

b. Dropping weak grounds that dilute strong ones

c. Positioning the case for long-term litigation health

Winning is as much about focus as it is about argument.

In certain instances, it may be prudent to concede some issues so that other aspects of the case receive due recognition and relief.

11. GST Tribunal Will Set Industry-Wide Precedents

Tribunal orders do not operate in isolation.

a. One adverse order can affect multiple future years

b. Patterns get noticed by the department

c. Reputational risk arises beyond immediate tax exposure

Your case today could become the department’s reference point tomorrow.

12. This Is the Time to Audit Your Litigation Readiness

Every business should already be doing:

a. Mapping pending notices and orders

b. Assessing appeal-worthiness issue by issue

c. Conducting evidence gap analysis

This is not panic management. It is risk governance.

13. Businesses Need Advisors, Not Just Filers

At this stage, businesses need:

a. Someone who challenges assumptions

b. Someone who thinks like the Tribunal

c. Someone who safeguards future exposure, not just present liability

The role is no longer about filing; it is about protecting the litigation balance sheet.

14. The Message Is Simple

The GST Tribunal is not about forms. It is not about the volume of submissions.
It is about facts, framing, and foresight, which requires a considered attention and strategy to achieve the desired outcome.

15. Less Pressure on High Courts and Better Quality of Orders

Lower courts handle more cases, so High Courts are not overloaded. This helps High Courts focus on matters of interpretation and questions of law. Accordingly, it becomes an important decision to determine whether to appeal before the Tribunal or to approach the courts on questions of law and vires.

The GST Tribunal is the most important stage for deciding GST disputes on facts and law. As a judicial forum, the Tribunal can be expected to undertake an impartial scrutiny and appreciation of facts and legal positions.

The Tribunal is coming….

Prepare early. Prepare right.

For any clarifications or queries, please feel free to reach out to us at:
admin@fintracadvisors.com

Disclaimer

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