In a major step towards strengthening the Goods and Services Tax (GST) dispute resolution framework in the country, the Goods and Services Tax Appellate Tribunal (GSTAT), functioning under the Department of Revenue, Ministry of Finance, has issued a detailed Office Order providing for the constitution, categorisation and operational allocation of Benches across the country for hearing GST appeals and related matters. The order has been issued vide Office Order No. 3/GSTAT/PB/2026 dated 14 May 2026.
The order has been issued in pursuance of the provisions contained under Section 109(8) of the Central Goods and Services Tax (CGST) Act, 2017 read with Rule 110A of the CGST Rules, 2017, which empower the GST Appellate Tribunal to regulate the listing and adjudication of matters before Single Benches and Division Benches.
The Office Order states that matters involving tax liability or issues valued below ₹50 lakh and not involving any substantial question of law may, subject to approval by the President or Vice-President of the concerned State Bench, be listed before a Single Bench after scrutiny of records.
At the same time, safeguards have also been incorporated to ensure legal consistency and judicial scrutiny in matters involving interpretation of law. The order specifically provides that where a Single Bench subsequently forms an opinion that an appeal involves a question of law, such matter may be referred back to the Division Bench after recording reasons and obtaining approval from the competent authority.
Invoking powers under Rule 123 of the GSTAT (Procedure) Rules, 2025, GSTAT President Dr. Sanjaya Kumar Mishra has further directed that all pending matters and future filings before the Principal Bench and all State Benches shall first be listed before a Division Bench. Only upon satisfaction that the matter does not involve any question of law may the Division Bench recommend transfer of such cases for hearing before a Single Bench.
The direction has been issued with the objective of removing procedural difficulties, ensuring judicial discipline and promoting uniformity in adjudication of GST disputes across the country.
Three-Tier Categorisation of GST Appeals Introduced
To streamline functioning and improve disposal efficiency, GSTAT has introduced a detailed classification framework dividing matters into three separate categories based on subject matter and legal complexity.
Category-I Matters: Core Tax and Legal Interpretation Issues
Category-I matters comprise disputes involving substantial questions relating to taxation principles, legal interpretation and determination of tax liability. These include:
- Misclassification of goods or services;
- Wrong applicability of exemption or rate notifications;
- Determination of time and value of supply;
- Eligibility and admissibility of Input Tax Credit (ITC);
- Liability to pay tax on goods or services;
- Questions relating to compulsory registration or suo motu registration;
- Determination whether a particular activity constitutes supply of goods or services;
- Proceedings under Section 73 relating to tax short payment or excess ITC utilisation;
- Proceedings under Section 74 involving fraud, wilful suppression of facts and wrongful availment of ITC.
These matters are considered legally significant as they involve interpretation of statutory provisions, notifications and tax principles affecting revenue administration and taxpayer liabilities.
Category-II Matters: Registration, Recovery and Refund Related Issues
Category-II cases mainly relate to administrative, procedural and compliance-oriented disputes under GST law. These include:
- Registration approval or rejection;
- Amendment of registration;
- Suspension or cancellation of registration;
- Revocation of cancellation of registration;
- Orders relating to GST Practitioners;
- Recovery proceedings including garnishee actions;
- Wrongful tax collection matters;
- Assessment orders for non-filers or unregistered persons;
- Refund-related disputes including provisional refunds and re-credit orders;
- Issues relating to provisional assessments.
The categorisation is expected to facilitate specialised handling of compliance and procedural disputes while ensuring quicker disposal of taxpayer grievances.
Category-III Matters: Residual and Consequential Proceedings
Category-III includes consequential and ancillary proceedings arising from GST enforcement and recovery actions. These include:
- Seizure and confiscation of goods or property;
- Rectification or withdrawal of orders;
- Demand modifications under earlier tax laws;
- Permission for payment in instalments;
- Provisional attachment of property;
- Penalty proceedings;
- Compounding of offences;
- Residual matters not covered under Categories I and II.
The Order further clarifies that such Category-III matters shall ordinarily be heard by the same Bench dealing with the principal dispute from which such consequential proceedings arise. However, specified exceptions have been made for Karnataka, Guwahati and Kolkata Benches.
Detailed Constitution of Benches Across States and UTs
The Office Order also provides an elaborate bench-wise allocation of Judicial Members, Technical Members and Vice-Presidents for GSTAT Benches functioning across States and Union Territories.
Key Highlights of Bench Constitution
Delhi Bench
At the Delhi Bench:
- Category-I matters will be heard by Vice-President Sh. Sanjay Kumar Aggarwal along with Technical Member (Centre) Sh. Rajiv Kapoor on Monday, Tuesday and Wednesday.
- Category-II matters will be heard by Judicial Member Sh. Arun Kumar Singal along with Sh. Rajiv Kapoor on Thursday and Friday.
Bengaluru Bench
For Karnataka:
- Category-I matters will be heard by Vice-President Sh. H.G. Nagarathna with Technical Member (State) Sh. Jagannatha Sagar Dasappa.
- Category-II matters will be handled by Judicial Member Sh. Srikanth Venkatraman with Technical Member (Centre) Ms. Sudha Koka.
- Category-III matters will be heard separately by Judicial Member Sh. Prabhakaran P.M. with Technical Member (State) Sh. Ravi Jesuraj S.
Mumbai Bench
For Maharashtra:
- Category-I matters will be heard by Judicial Member Sh. Atul Madhukar Kurhekar along with Technical Member (Centre) Sh. J. Michael Kennedy.
- Category-II matters will be heard by the same Judicial Member along with Technical Member (State) Sh. David Thomas Alvaris.
- Separate arrangements have also been made for Panaji, Nagpur, Pune, Thane and Chhatrapati Sambhajinagar Benches.
Chennai and Tamil Nadu Benches
The order also allocates hearing schedules for Chennai, Coimbatore, Madurai and Puducherry Circuit Benches with detailed day-wise allocation of matters and Members.
Uttar Pradesh Benches
Separate Bench arrangements have been notified for:
- Ghaziabad,
- Lucknow,
- Prayagraj,
- Varanasi,
- Agra.
The Order similarly details constitution and functioning of Benches for Andhra Pradesh, Bihar, Punjab, Haryana, Rajasthan, Gujarat, Telangana, Kerala, Madhya Pradesh, West Bengal, Assam and other States and Union Territories.
Provision for Virtual, Hybrid and Circuit Hearings
Recognising the need for flexibility and accessibility, the Office Order authorises Members assigned to neighbouring States or nearby jurisdictions to conduct hearings through:
- Virtual mode,
- Hybrid mode, or
- Circuit sittings, subject to consultation with the concerned Vice-President.
The Order further states that Members assigned duties in neighbouring States or alternate locations shall be entitled to travelling and daily allowances equivalent to officers of Level-17 of the Central Government. The concerned benches have also been directed to extend all logistical support and courtesies for travel and stay arrangements.
Significant Reform in GST Appellate Administration
The constitution of benches and introduction of subject-wise categorisation is expected to bring greater clarity, uniformity and efficiency in GST appellate proceedings across the country. The move is likely to:
- Reduce pendency of GST disputes;
- Ensure specialised adjudication of legal and procedural matters;
- Improve consistency in interpretation of GST law;
- Facilitate faster disposal of appeals;
- Enhance ease of doing business and taxpayer confidence.
The Office Order marks a significant milestone in operationalising the GST Appellate Tribunal framework and strengthening the institutional architecture for indirect tax dispute resolution in India.
The Complete Order can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/05/Creation-of-Benches-to-the-members-dated-14.05.2026-DSC.pdf
