Experts said the move will help reduce burden on high courts. As per the order issued by the finance ministry, Uttar Pradesh will have three benches, while Karnataka and Rajasthan two each, and one for northeastern states. They expect the tribunals to be functional in three to four months given the need to set up infrastructure and make appointments.

As opposed to a total number of nine benches of the Customs Excise and Service Tax Tribunal (CESTAT), the new approach of constituting multiple benches of the tribunals at state level, under the GST laws, will be helpful for assessees, who can now expect their appeals to be disposed locally, said Shashi Mathews, partner at law firm INDUSLAW.

'In the absence of these tribunals, businesses had to approach the high courts, which, in general, proved to be a long drawn process and costly affair, while also adding pressure on already overburdened high courts," said Chandrajit Banerjee, director general of CII (Confederation of Indian Industry).

Banerjee said speedier resolution of cases by the tribunals will help in bolstering business sentiments and ease of doing business in the country.

"It's comforting to know that in phase one, the seven sister states, would also have a GST tribunal. The next step would be to find acceptable places for tribunals, nominate qualified members, and provide the necessary infrastructure and resources," said Rajat Mohan, senior partner at accounting firm AMRG & Associates.