Merchants’ Chamber of Commerce & Industry organised “The Strategic Tax Seminar for MSMEs: Resolving GSTAT Challenges & Unlocking Values in Customs” Today at the Conference Hall of the Chamber.

The Session was addressed by CA Ishan Tulsian, FCA, ACS, LLB, Diploma in International Taxation, Partner, R. Tulsian & Co LLP, and CA Vivek Jalan, FCA, L.LM (Constitutional Law), LLB, MBA (International Trade), Founder Partner, Tax Connect Advisory Services LLP.

CA Ishan Tulsian, FCA, ACS, LLB, Diploma in International Taxation, Partner, R. Tulsian & Co LLP, in his address, said that in order to enhance awareness among taxpayers and professionals regarding appellate mechanisms under GST, the key powers of the GST Appellate Tribunal (GSTAT) are reiterated below. The Appellate Tribunal, as constituted under the CGST Act, shall be deemed to be a civil court, and proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code.

Powers vested in the Appellate Tribunal include:

• Summoning and enforcing attendance: The Tribunal can summon any person, enforce their attendance, and examine them on oath. Ref: Sections 88 to 98
• Discovery of documents: It may require the discovery and production of documents. Ref: Sections 84 to 87
• Evidence on affidavit: The Tribunal is empowered to receive evidence on affidavit. Ref: Sections 78 to 87
• Issue of commissions: It can issue commissions for the examination of witnesses or documents. Ref: Sections 88 to 98
• Ex parte proceedings: The Tribunal may dismiss a representation for default or decide it ex parte. It is also empowered to set aside such orders. Ref: Section 42
• Residuary powers: The Tribunal may exercise powers in respect of any other matter as may be prescribed, thereby capturing the rule-making authority.

These powers ensure that the Tribunal functions effectively as a judicial body, safeguarding the principles of natural justice while expediting GST dispute resolution.

He further added that, as per Sec 112(1) of the CGST Act, 2017, the time limit for filing appeals to the GST Appellate Tribunal depends on the date of communication of the order:

• Orders communicated before 1 April 2026: Appeal can be filed up to 30 June 2026. 
• Orders communicated on or after 1 April 2026: The normal 3-month limitation applies.

CA Vivek Jalan, FCA, L.LM (Constitutional Law), LLB, MBA (International Trade), Founder Partner, Tax Connect Advisory Services LLP in his address said that every honest taxpayer should be protected and if it is held, he has no intention of evading tax by submitting wrong data or misinformation or fraudulent misinformation having intend to evade tax then he should be given a proper hearing before saddling him with penalties and interest. The period in which proceedings in the original and appeal were heard was a difficult time, as it was during the COVID-19 pandemic. The CGST / SGST Act is a relatively new Act, and professionals may not be thorough in filing returns for the relevant period. Due to Automated Systems in GST, there were chances of human error.

CA Jalan pointed out that the Deferred Duty Payment Scheme is applicable to Eligible Manufacturer Importers (EMIs) who meet the prescribed compliance criteria under Customs law. Key features of the scheme:

• Deferred payment of duty: Customs duty on imports cleared during a month can be deferred and paid on the 1st day of the succeeding month. For imports made in March, payment must be made by 31st March.
• Quick port clearance: The facility enables faster clearance of imported goods without the requirement of upfront duty payment.
• Ease of availing: The deferred payment option can be selected in the Bill of Entry at the time of import clearance.
• Application process: EMI approval applications are to be filed electronically through the AEO portal. The application process has been live since 1st March.

He highlighted the MOOWR Scheme. The Scheme is introduced by CBIC under Sections 58 & 65 of the Customs Act, 1962, and revamped in 2019 to support Make in India and Ease of Doing Business. The scheme defers customs duties on imported capital goods and inputs used for manufacturing/other operations in bonded warehouses. It helps manufacturers save working capital by deferring duty until goods enter the domestic market, with zero duty on exports.

Shri Sanjib Kothari, Treasurer & Chairman, Council on MSMEs, MCCI, in his Welcome Address said that GSTAT is a specialized, quasi-judicial body established by the Government to resolve GST-related disputes and appeals between taxpayers and tax authorities. It serves as the forum for the second level of appeal. If a taxpayer is dissatisfied with the decision of the First Appellate Authority, they can escalate the case to GSTAT.

He added that Unlocking value in Customs for MSMEs focuses on lowering trade barriers, improving liquidity, and digitizing compliance. Key mechanisms include utilizing preferential Free Trade Agreements (FTAs), leveraging export incentives like RoDTEP, and qualifying for Authorized Economic Operator (AEO) status for faster, cheaper customs clearance.

The Session was concluded with a hearty Vote of Thanks proposed by Shri Akhil Sonthalia, Co-Chairman, Council on MSMEs, MCCI.