A new Goods and Services Tax (GST) Tribunal will start operating next month in Kolkata. This will provide necessary support to the region’s tax system. An official announced on Tuesday that the tribunal will be located in Alipore and will have two separate benches.
Shrawan Kumar, the Chief Commissioner for the Kolkata Zone of CGST and Central Excise, explained that one bench will serve West Bengal, while the other will handle cases from Sikkim and the Andaman and Nicobar Islands. This development is part of a larger plan to set up GST Appellate Tribunals across the country. As of July, only 28 of the 73 approved benches were active, showing how important the new Kolkata location is. The tribunal is a key body that hears appeals against orders from lower appellate authorities under both the Central and State GST Acts.
In another discussion at the Merchants’ Chamber of Commerce and Industry session, West Bengal Commercial Taxes Commissioner Uma Sankar warned about possible revenue loss for the state. This concern comes from a planned update to the GST structure that would group most goods into two main tax categories: 5% and 18%. The current 12% and 28% rates will be removed. Officials expect this change will reduce the weighted average GST rate from the current 11.6% to just 9.5%.
When asked if these lower rates might eventually expand the tax base, Sankar admitted that it is a long-term goal. He noted that a drop in GST rates, along with higher disposable income from the new income tax rules, should increase consumption. However, he warned that it will take time to see the full economic impact.
