FM Nirmala Sitharaman’s Reply |The Central Goods & Services Tax (2nd Amend) Bill, 2023

1. I truly accept the Honourable Chief Justice of India's view about the maximum age limit of GSTAT (Goods and Services Tax Appellate Tribunal) from the hitherto age of 67 and 65 for the President and members respectively to bring it in line with the Tribunal Reforms Act, 2021 as 70 and 67 for the President and members respectively. By doing so, it brings the maximum age limits in line with other Appellate Tribunals like ITAT (Income Tax Appellate Tribunal) and NCLAT (National Company Law Appellate Tribunal) which follow the same 70 and 67 respectively.

2. The changes in GST portal and other continuous changes in GST over the past 6 years, some of which have also been for the betterment of the GST Taxpayers, could be heard only by senior experienced Appellate Authorities and hence increasing the maximum age limit could be beneficial for the GST Taxpayers if the cases are resolved properly.

3. The GST Taxpayers to move their pending cases in High Courts and Supreme Courts to Appellate Authorities would depend upon how speedily the GST Taxpayers want their pending cases to be resolved.

4. On the point of MSMEs relating to GST, like you say Madam, you don't have the authority and facts to talk about State PSUs but you are reasonably confident about Central PSUs, I too put forth my point regarding MSMEs but from the Income Tax Angle. As per clause 22 of 3CD Income Tax Audit Report, which speaks about amount of interest inadmissible under Section 23 of the MSMED Act, 2006. If an income tax assessee fails to make payment to the MSME supplier within the time given under section 15 of the MSMED Act, 2006 and require to pay interest to its MSME supplier as per section 16 of the said act, then as per section 23 of the same act, such interest shall not be allowed as a deduction for the purposes of the computation of income under the Income Tax Act, 1961. However, most of the Income Tax Audit Reports 3CD across the country, you could find a qualification given by the Tax Auditors stating that creditors under MSMED Act, 2006 are not ascertainable.

Just my point of view, Madam 🙏