After nearly eight years of waiting since the Goods and Services Tax regime was introduced in India on July 1, 2017, the GST Appellate Tribunal (GSTAT) has finally become a functioning reality. Launched formally by Finance Minister Nirmala Sitharaman on September 24, 2025, the GSTAT is the appellate authority established under the CGST Act, 2017 to hear appeals on tax disputes against orders passed by the appellate or revisional authorities. Its operationalisation marks one of the most significant institutional reforms in India's indirect tax landscape in recent years.

Structure and Composition of GSTAT:

The GSTAT has been constituted under Section 109 of the CGST Act, 2017. It has its Principal Bench at New Delhi and 31 other State Benches located across states and union territories, with sittings at 44 different locations across the country.

The Tribunal is headed by the President, who must be a Judge of the Supreme Court or a past or present Chief Justice of a High Court. The Principal Bench has three other Members - one Judicial Member and two Technical Members, one from the Centre and one from the States. All other benches have four members each - two Judicial Members and two Technical Members, one from the Centre and one from the State.

Justice (Retd.) Sanjaya Kumar Mishra, a former Chief Justice of the Jharkhand High Court, was appointed as the first President of the GSTAT.

Landmark First Judgment: Sterling & Wilson Case (February 11, 2026)

The most significant development so far in the short life of GSTAT is the delivery of its first substantive order. The first hearing of appeals by the Principal Bench of GSTAT was on December 18, 2025, and it delivered its first judgment in a Second Appeal on February 11, 2026.

This was also the first paperless judgment in Indian tribunal history ? the online hearing was held on February 11, 2026, and the judgment was uploaded on February 12, 2026, making it a landmark moment for speed, transparency, and technology in tax adjudication.

What the First Judgment Decided:

The first substantive order was delivered in the case of M/s Sterling & Wilson Pvt. Ltd. Through Zarine Yazdi Daruvala versus Commissioner, Odisha, Commissionerate of CT GST & Ors.(2026 (2) TMI 726 ? GSTAT New Delhi). The decision is described not merely as a remand order but as an institutional declaration on how second appeals under Section 112 of the CGST Act, 2017 are to be understood and administered.

The key findings of this historic judgment are:

• Jurisdictional Clarity:The Tribunal declared itself the final fact-finding authority under the GST framework and held that when fraud under Section 74 is not established, Section 75(2) mandates re - determination by the proper officer by treating the matter as if a Section 73 notice were issued.
• Prohibition on Appellate Substitution:Appellate authorities cannot themselves convert Section 74 proceedings into Section 73 assessments - they must remand for fresh adjudication. Conversion from Section 74 to Section 73 cannot be completed at the appellate level; the statutory mechanism requires remand, and appellate substitution would violate procedural discipline.
• Contextual Justice in Early GST Years: Paragraph 32 of the judgment reflects judicial sensitivity, with the Tribunal adopting a pragmatic approach toward reconciliation disputes arising in the formative GST years, particularly given the constraints taxpayers faced in filing during the early period of implementation.
• Dilip Kumar Distinguished: Revenue relied on the Supreme Court's Constitution Bench ruling in Commissioner of Customs v. Dilip Kumar & Company to invoke strict interpretation of tax statutes. The Tribunal distinguished the precedent, holding that it concerned interpretation of exemption notifications, whereas the present case involved factual reconciliation of alleged short payment - strict interpretation doctrine cannot substitute factual adjudication.

This first judgment has been hailed by tax practitioners as a foundational ruling that sets the tone for how GSTAT will adjudicate GST disputes going forward.

Filing Status: Over 1,000 Cases Filed:

As of mid-February 2026, as many as 1,082 cases have been filed online with the GSTAT. The Tribunal also has 7,811 registered users and 3,182 advocates registered with it. One case has been disposed of so far.

GSTAT Procedure Rules, 2025:

The Ministry of Finance notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 through Notification No. G.S.R. 256(E) dated April 24, 2025. These rules lay down the comprehensive framework and procedure for the functioning of the GSTAT, covering the filing of appeals, conducting hearings, issuing orders, and other administrative functions.

Key procedural highlights include:

Mandatory E-Filing: Every appeal or application must be filed electronically on the GSTAT portal. The appeal must be filed in prescribed Form GST APL-05, which should include the cause title, consecutively numbered paragraphs, and separate facts or allegations in each paragraph.

Rejoinder Rights: If the respondent introduces additional facts, the appellant may be allowed to file a rejoinder within one month or as directed by the Tribunal, ensuring the respondent receives a copy in advance.

Digital-First Operations: GSTAT is the first tribunal in India to go digital from its very inception. All appeals and applications filed on the e-filing portal are processed through the Case Information System and Document Management System, and all orders are passed and uploaded on the GSTAT website.

Higher Court Orders: Orders from higher courts related to Tribunal decisions must be promptly presented to the Tribunal President and relevant bench for compliance and filed in the relevant case record.

Staggered Filing Windows and Key Deadlines:

One of the most practically important aspects for taxpayers and legal professionals is the structured, staggered filing schedule introduced to avoid portal congestion.