Legal experts across India are increasingly advocating for a unified national framework to address the numerous unresolved legacy VAT cases that continue to burden both taxpayers and state tax administrations. With each state having had its own VAT laws, assessment procedures, and recovery mechanisms before the rollout of GST in 2017, the lack of a centralized resolution system has led to inconsistency, confusion, and prolonged litigation. Experts argue that a harmonized framework under central oversight would help streamline the process of settlement, avoid duplication of efforts, and bring uniformity in interpretation and enforcement across states.

The current fragmented approach has resulted in a wide disparity in how legacy VAT disputes are handled. While some states have introduced amnesty schemes or online portals to expedite resolution, others continue to rely on manual processes, outdated systems, and discretionary enforcement. This has led to concerns over procedural fairness, delays in refunds, and unjustified tax demands being raised years after transactions took place. A national-level body or directive, legal experts suggest, could establish standardized timelines, dispute resolution procedures, and documentation protocols to ensure transparency and predictability for taxpayers navigating these legacy issues.

Furthermore, a unified framework could be instrumental in reducing the caseload on appellate forums and courts, which are currently overwhelmed with VAT-related petitions. It would also restore business confidence by signaling the government’s commitment to tax certainty and administrative reform. Such a move would not only help wind down the remnants of the pre-GST era efficiently but also provide valuable policy insights for handling future tax transitions. Legal commentators emphasize that without a coordinated strategy, legacy VAT disputes risk becoming a long-term obstacle to achieving a fully modernized and taxpayer-friendly indirect tax regime in India.