Section 114 of the Central Goods and Services Tax Act, 2017 deals with the financial and administrative powers of the President of the Goods and Services Tax Appellate Tribunal (GSTAT).
The provision is part of Chapter XVIII of the CGST Act, which deals with appeals and revision. While Sections 109 to 113 primarily deal with the constitution, members, procedure, appeals and orders of the Appellate Tribunal, Section 114 deals with the administrative and financial authority of its President.
The current Section 114 is a short provision. It states that the President shall exercise such financial and administrative powers over the Appellate Tribunal as may be prescribed. The section was substantially changed by the Finance Act, 2023 with effect from 1 August 2023. The earlier version specifically referred to the National Bench and Regional Benches and contained an express delegation proviso. The current provision uses the broader expression “Appellate Tribunal.”
What Is Section 114 of the CGST Act?
Section 114 is titled “Financial and administrative powers of President.”
The current statutory provision provides:
“The President shall exercise such financial and administrative powers over the Appellate Tribunal as may be prescribed.”
This means that Section 114 establishes the President’s role in the financial and administrative management of GSTAT, while the specific powers and their manner of exercise are to be prescribed under the applicable legal framework.
The provision is therefore concerned with the institutional administration of the Appellate Tribunal, rather than with deciding the merits of a GST appeal.
Why Is Section 114 Important?
The Appellate Tribunal is a statutory appellate body that handles GST disputes arising from orders of the Appellate Authority or Revisional Authority.
For the Tribunal to function effectively, it requires an administrative structure covering matters such as:
- functioning of its benches;
- allocation and management of institutional resources;
- financial administration;
- administrative coordination;
- office management;
- implementation of prescribed procedures; and
- other institutional matters falling within the prescribed powers.
Section 114 provides the statutory basis for placing financial and administrative responsibility with the President of the Appellate Tribunal.
It therefore complements the judicial and appellate functions of GSTAT with an administrative leadership structure.
Section 114 Is About Administration, Not Adjudication
One of the most important points to understand is that Section 114 does not give the President general power to decide GST appeals merely because the President has financial and administrative powers.
The adjudicatory functions of the Tribunal arise from other provisions, particularly:
- Section 111 – Procedure before Appellate Tribunal;
- Section 112 – Appeals to Appellate Tribunal; and
- Section 113 – Orders of Appellate Tribunal.
Section 114 deals with the financial and administrative powers of the President.
Therefore, there is a distinction between:
Judicial/adjudicatory function → deciding appeals and legal issues
and
Administrative/financial function → managing the institutional functioning of the Tribunal within the prescribed framework.
Current Wording of Section 114
The current Section 114 is materially different from the original provision.
Earlier Provision
Before the Finance Act, 2023 amendment, Section 114 stated that the President would exercise prescribed financial and administrative powers over the National Bench and Regional Benches.
It also contained a proviso expressly allowing the President to delegate specified financial and administrative powers to another Member or officer of those benches, subject to the President’s direction, control and supervision.
Current Provision
The Finance Act, 2023 substituted Section 114 with the following shorter framework:
“The President shall exercise such financial and administrative powers over the Appellate Tribunal as may be prescribed.”
The substitution came into effect from 1 August 2023 through Notification No. 28/2023-Central Tax.
This amendment should be kept in mind when reading older GST articles or textbooks that reproduce the pre-2023 wording.
Finance Act, 2023 and Section 114
The Finance Act, 2023 made several structural changes to the GST Appellate Tribunal provisions.
Among other changes, the legislation restructured the terminology concerning Tribunal benches and substituted Section 114.
The amendment changed Section 114 from a provision specifically dealing with the financial and administrative powers of the President over the National and Regional Benches to a broader provision covering the Appellate Tribunal as a whole.
This means that explanations based entirely on the old wording of Section 114 should not be treated as the current statutory position.
Role of the President of GSTAT
The President is the head of the Appellate Tribunal in accordance with the statutory framework governing GSTAT.
Section 109 deals with the constitution of the Appellate Tribunal and its benches, while Section 110 deals with the President and Members, including their qualifications, appointment and conditions of service.
Section 114 then specifically addresses the President’s financial and administrative powers.
The provisions therefore work together:
| Section | Main subject |
|---|---|
| Section 109 | Constitution of Appellate Tribunal and Benches |
| Section 110 | President and Members |
| Section 111 | Procedure before Appellate Tribunal |
| Section 112 | Appeals to Appellate Tribunal |
| Section 113 | Orders of Appellate Tribunal |
| Section 114 | Financial and administrative powers of President |
This structure shows that Section 114 is primarily an institutional management provision.
What Are Financial Powers?
Section 114 refers to financial powers that are to be prescribed.
The term broadly concerns the financial administration necessary for the functioning of the Appellate Tribunal, subject to the applicable statutory and prescribed framework.
Depending on the powers prescribed under the applicable rules and administrative arrangements, financial administration may involve matters such as:
- authorised expenditure;
- financial approvals;
- budgetary administration;
- institutional resources;
- expenditure connected with Tribunal functioning; and
- other financial matters assigned under the prescribed framework.
The exact scope of a particular financial power must be determined from the applicable rules, notifications and administrative instructions rather than assumed solely from the words of Section 114.
What Are Administrative Powers?
Administrative powers relate to the management and functioning of the Tribunal as an institution.
They can include matters connected with:
- internal administration;
- functioning of benches;
- institutional coordination;
- case-management arrangements;
- staff and office administration;
- allocation of administrative responsibilities; and
- implementation of prescribed Tribunal procedures.
Again, Section 114 itself does not list every individual administrative power. It provides that the President exercises such powers as may be prescribed.
Therefore, the statutory text should be read together with the applicable rules and administrative framework.
Meaning of “As May Be Prescribed”
The expression “as may be prescribed” is important.
Section 114 does not itself provide a detailed list of every financial and administrative power.
Instead, it establishes the President’s authority and leaves the detailed prescription of those powers to the applicable legal framework.
This is different from a provision that expressly enumerates every power within the section itself.
Therefore, when determining whether a particular administrative or financial action falls within the President’s authority, the relevant prescribed rules and legal instruments should also be examined.
Section 114 and GSTAT Rules
The operation of GSTAT involves more than the bare provisions of the CGST Act.
The Tribunal’s functioning is supported by rules dealing with matters such as:
- appointment and conditions of service;
- procedure before the Tribunal;
- filing and processing of appeals;
- hearings;
- documentation;
- registry functions; and
- other administrative matters.
The GSTAT framework has also developed through the rules and notifications issued for operationalising the Tribunal.
Therefore, Section 114 should not be interpreted in isolation when examining a particular financial or administrative power.
GSTAT and Its Institutional Structure
The Goods and Services Tax Appellate Tribunal is the appellate forum established under Section 109.
The Tribunal deals with appeals against specified orders of the Appellate Authority or Revisional Authority.
The current GSTAT structure was reorganised through amendments to the CGST Act, including the Finance Act, 2023.
The statutory provisions now use the post-amendment terminology concerning the Principal Bench and State Benches, rather than relying on the older National Bench, Regional Bench and Area Bench structure in the same manner as the original Act.
Section 114 was correspondingly simplified so that it refers to the Appellate Tribunal as a whole.
Section 114 and Section 109
Section 109 deals with the constitution of the Appellate Tribunal and its Benches.
It establishes the statutory framework under which GSTAT functions.
Section 114 is different.
It does not establish the Tribunal or determine the jurisdiction of a particular bench. Instead, it deals with the President’s financial and administrative powers over the Tribunal.
Therefore:
Section 109 → Constitution and structure
Section 114 → Financial and administrative authority of the President
Section 114 and Section 110
Section 110 deals with the President and Members of the Appellate Tribunal, including matters such as:
- qualifications;
- appointment;
- conditions of service;
- tenure;
- resignation;
- removal; and
- related matters.
Section 114 focuses specifically on the financial and administrative powers of the President.
The two provisions therefore concern different aspects of the President’s role.
Section 114 and Section 111
Section 111 deals with the procedure before the Appellate Tribunal.
It provides that the Tribunal is not bound by the procedure laid down in the Code of Civil Procedure, 1908, but is guided by principles of natural justice and, subject to the Act and Rules, has power to regulate its own procedure.
Section 114 is different because it concerns the President’s financial and administrative powers.
In simple terms:
Section 111 → How appeals and proceedings are conducted
Section 114 → Financial and administrative management of the Tribunal
Section 114 and Section 112
Section 112 deals with appeals to the Appellate Tribunal.
It specifies matters such as:
- who may appeal;
- the limitation period;
- cross-objections;
- pre-deposit requirements;
- filing requirements; and
- consequences of payment of the prescribed amount.
Section 114 does not change these appellate rights or conditions.
The President’s administrative powers cannot be understood as a general power to alter substantive statutory appeal requirements.
Section 114 and Section 113
Section 113 deals with orders of the Appellate Tribunal.
It provides the Tribunal with powers to:
- confirm;
- modify;
- annul; or
- remand matters,
subject to the conditions of the section.
It also contains provisions relating to:
- adjournments;
- rectification of errors;
- one-year target for disposal as far as possible;
- communication of orders; and
- finality of Tribunal orders subject to further appeals.
Section 114 does not replace or modify those adjudicatory powers.
President’s Administrative Role and Judicial Independence
The distinction between administrative and judicial functions is important.
Section 114 deals with financial and administrative powers. Decisions on the merits of GST disputes are governed by the adjudicatory provisions of the Act.
Therefore, administrative authority under Section 114 should not be confused with authority to dictate the outcome of a particular appeal.
The Tribunal’s adjudicatory functions operate under the statutory framework governing appeals and judicial proceedings.
👉 Read More → Section 115 – Interest on refund of amount paid for admission of appeal
Delegation Under the Current Section 114
A particularly important change is that the current Section 114 no longer contains the detailed delegation proviso that appeared in the pre-1 August 2023 version.
The old provision expressly stated that the President could delegate financial and administrative powers to another Member or officer, subject to the President’s direction, control and supervision.
The Finance Act, 2023 removed that detailed proviso when it substituted Section 114.
Therefore, older explanations saying that the current Section 114 itself expressly contains a delegation power should be treated cautiously.
Any present-day delegation arrangement should be examined under the current statutory and prescribed administrative framework rather than simply reproducing the old proviso.
Why the 2023 Amendment Matters
The 2023 amendment is important for anyone researching Section 114 because many older versions of the CGST Act continue to appear online.
For example, older versions may state:
- National Bench;
- Regional Benches; and
- an express delegation power.
The current Section 114, following the Finance Act, 2023 amendment, instead refers broadly to the Appellate Tribunal.
The amendment therefore changed the statutory wording that should be used when explaining the current provision.
Practical Example – Administrative Expenditure
Suppose GSTAT requires expenditure for an authorised institutional purpose.
The financial administration of such expenditure must operate within the prescribed financial framework.
Section 114 provides the statutory basis for the President’s financial and administrative role.
However, the specific approval process, financial limits and applicable conditions must be determined from the relevant prescribed framework.
Practical Example – Administrative Management
Suppose the Tribunal needs to organise administrative work between its benches.
The President’s administrative powers under Section 114 form part of the statutory basis for managing the Tribunal’s institutional functioning.
The President’s administrative decisions must, however, remain consistent with the CGST Act, applicable rules and other governing legal requirements.
Practical Example – Case Management
The Tribunal receives a large number of appeals.
Administrative arrangements may be required for:
- listing;
- registry work;
- allocation of administrative responsibilities;
- scheduling; and
- coordination between Tribunal offices.
Such institutional management is distinct from deciding the legal merits of the individual appeals.
Section 114 belongs to this administrative side of the Tribunal’s functioning.
Section 114 Does Not Decide Tax Liability
The President’s financial and administrative powers do not mean that the President personally determines every taxpayer’s GST liability.
Tax liability in an appeal is decided through the adjudicatory process before the competent Bench of the Appellate Tribunal.
For example, whether a taxpayer is liable to pay additional GST, whether ITC was correctly denied or whether a penalty should be sustained are matters dealt with under the appellate provisions.
Section 114 concerns the institutional financial and administrative powers of the President.
Section 114 and Tribunal Benches
The Tribunal operates through its statutory bench structure.
Section 109 provides the framework for the constitution and functioning of benches.
Section 114 places financial and administrative powers with the President over the Appellate Tribunal as provided by law.
Therefore, Section 114 supports the administration of the Tribunal’s overall institutional structure rather than creating a separate appellate jurisdiction.
Section 114 and State Benches
Following the restructuring made by the Finance Act, 2023, the CGST Act uses the revised bench terminology.
The President’s authority under the current Section 114 is stated over the Appellate Tribunal, rather than being restricted in the text of the section to the former National and Regional Benches.
This broader wording corresponds with the restructuring of the Tribunal under the amended provisions.
Section 114 and Financial Accountability
Financial authority does not mean unrestricted spending power.
The President’s financial powers remain subject to:
- the prescribed framework;
- applicable government financial rules;
- sanctioned expenditure;
- statutory requirements; and
- other applicable controls.
Section 114 establishes the role of the President; it does not remove the requirement to comply with the wider legal framework governing public expenditure.
Section 114 and Administrative Accountability
The same principle applies to administrative powers.
Administrative decisions must operate within the applicable statutory and regulatory framework.
The President’s authority is therefore an institutional responsibility, not an unrestricted power to disregard the law or prescribed procedures.
Importance of the President’s Role in GSTAT
The Tribunal’s effectiveness depends not only on judicial decision-making but also on efficient institutional administration.
A functioning appellate tribunal requires:
- properly managed registry operations;
- appropriate administrative support;
- financial management;
- infrastructure;
- coordination between benches;
- implementation of procedural rules; and
- other institutional arrangements.
Section 114 provides the statutory foundation for the President’s role in this area.
Difference Between Section 114 and Section 111
| Basis | Section 111 | Section 114 |
|---|---|---|
| Subject | Procedure before Appellate Tribunal | Financial and administrative powers of President |
| Main focus | Conduct of proceedings | Institutional management |
| Applies to | Appellate Tribunal | President of Appellate Tribunal |
| Key concept | Natural justice and own procedure | Financial and administrative powers |
| Purpose | Facilitate adjudication | Facilitate administration |
Difference Between Section 114 and Section 109
| Basis | Section 109 | Section 114 |
|---|---|---|
| Subject | Constitution of Tribunal and Benches | President’s financial and administrative powers |
| Focus | Institutional structure | Institutional administration |
| Main role | Establishes Tribunal framework | Provides presidential administrative authority |
| Connection | Determines Tribunal structure | Supports its functioning |
Difference Between Section 114 and Section 110
| Basis | Section 110 | Section 114 |
|---|---|---|
| Subject | President and Members | President’s financial and administrative powers |
| Focus | Qualification, appointment, service and tenure | Financial and administrative authority |
| Main question | Who can serve and under what conditions? | What administrative and financial authority does the President exercise? |
Difference Between Section 114 and Section 113
| Basis | Section 113 | Section 114 |
|---|---|---|
| Subject | Orders of Appellate Tribunal | Financial and administrative powers |
| Nature | Adjudicatory | Administrative/financial |
| Focus | Deciding appeals | Managing Tribunal functioning |
| Examples | Confirming, modifying or annulling orders | Financial and administrative management |
Practical Importance for Tax Professionals
Tax professionals who appear before GSTAT should understand Section 114 because Tribunal administration affects the institutional functioning of the appellate system.
However, when dealing with an individual appeal, professionals should primarily examine:
- Section 112 for the right and conditions of appeal;
- Section 111 for Tribunal procedure;
- Section 113 for Tribunal orders;
- Section 117 for appeals to the High Court; and
- Section 118 for appeals to the Supreme Court.
Section 114 is principally concerned with the President’s administrative and financial role.
Key Points to Remember About Section 114
The major points of Section 114 are:
- Section 114 is part of Chapter XVIII of the CGST Act.
- Chapter XVIII deals with appeals and revision.
- Section 114 is titled “Financial and administrative powers of President.”
- The provision concerns the President of the Appellate Tribunal.
- The current section states that the President shall exercise such financial and administrative powers over the Appellate Tribunal as may be prescribed.
- Section 114 therefore provides a statutory basis for the President’s institutional financial and administrative role.
- The section does not itself provide a detailed list of every financial or administrative power.
- The specific scope of such powers depends on the prescribed legal and administrative framework.
- Section 114 was substantially amended by the Finance Act, 2023.
- The amended provision came into effect from 1 August 2023.
- Before the amendment, Section 114 referred specifically to the National Bench and Regional Benches.
- The earlier version also contained an express proviso concerning delegation of financial and administrative powers.
- The current Section 114 uses the broader expression “Appellate Tribunal.”
- The current section should therefore not be explained solely using the old National Bench and Regional Bench wording.
- Section 114 does not confer general power to decide GST appeals.
- The adjudicatory functions of the Tribunal are governed by other provisions, particularly Sections 111, 112 and 113.
- Section 109 deals with the constitution of the Appellate Tribunal and its benches.
- Section 110 deals with the President and Members and their qualifications, appointment and service conditions.
- Section 111 deals with the procedure before the Appellate Tribunal.
- Section 112 deals with appeals to the Appellate Tribunal.
- Section 113 deals with orders of the Appellate Tribunal.
- Section 114 deals specifically with financial and administrative powers.
- The President’s financial powers remain subject to the prescribed framework and applicable financial controls.
- The President’s administrative powers likewise operate within the applicable statutory and regulatory framework.
- The current Section 114 should be read with the post-2023 GSTAT structure and applicable rules and notifications.
Conclusion
Section 114 of the CGST Act provides the statutory framework for the financial and administrative powers of the President of the Goods and Services Tax Appellate Tribunal.
The current provision is concise and states that the President shall exercise such financial and administrative powers over the Appellate Tribunal as may be prescribed. It is therefore primarily concerned with the institutional management and administration of GSTAT, rather than the adjudication of individual GST disputes.
An important point for understanding the current law is the amendment made by the Finance Act, 2023. With effect from 1 August 2023, Section 114 was substituted. The earlier provision referred specifically to the National Bench and Regional Benches and contained an express delegation proviso. The current provision instead uses the broader expression “Appellate Tribunal.”
This change matters because older versions of the CGST Act and older GST articles may reproduce the pre-2023 wording. When explaining the current legal position, the amended Section 114 should be used.
Section 114 should also be understood alongside Sections 109 to 113. Section 109 deals with the constitution of GSTAT and its benches, Section 110 deals with the President and Members, Section 111 deals with Tribunal procedure, Section 112 deals with appeals and Section 113 deals with Tribunal orders. Section 114 then addresses the President’s financial and administrative role within this institutional framework.
For taxpayers and tax professionals, the practical significance of Section 114 is primarily institutional. It helps establish who is responsible for the financial and administrative functioning of the Appellate Tribunal, while the actual adjudication of GST appeals remains governed by the separate appellate provisions of the CGST Act.
In short, Section 114 gives the President of GSTAT the prescribed financial and administrative authority necessary for the functioning of the Appellate Tribunal, while the Tribunal’s judicial and appellate powers continue to operate under the other provisions of Chapter XVIII.
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