The move seeks to prevent smaller benches from deciding cases involving important legal questions, ensure consistent rulings, and streamline the process of resolving disputes.
Cases involving tax under ₹50 lakh and no legal issues can still go to a single bench, but only after approval from the GSTAT president or vice-president, and any subsequent discovery of a legal question will require referral back to a division bench.
To improve efficiency at hearings, GSTAT has classified disputes into three categories. The first covers tax, classification, valuation and input tax credit issues. The second category deals with registration, assessment, refund and recovery, and the third covers penalties, seizures, confiscations and other residual matters. The third category will be heard by the bench handling the principal dispute.
The tribunal has also finalised bench rosters across all states and Union Territories, including Delhi, Mumbai, Bengaluru, Chennai and Kolkata, with provisions for virtual, hybrid and circuit hearings.
The changes aim to speed up adjudication, reduce inconsistencies in rulings, and tighten oversight on cases with potential legal ramifications, especially for mid-value disputes.