Appeal under GST

GST tax rules essentially impose two sorts of obligations on tax-payers: tax-related and procedural-related obligations. The compliance of the taxpayer with this requirement is confirmed by the appropriate tax officers through return filing, audit, inspection, examination, search, seizure, and so on.

In some circumstances, there is a difference of opinion, such as perceived and actual noncompliance, with a specific set of laws/facts, resulting in conflicts between tax-payers and the GST authority. That is why an appeals system is provided to resolve such disagreements.

Time Period for Filing Appeal to Appellate Authority

According to Section 107(1) of the CGST Act, any person (registered or unregistered) who is dissatisfied with any decision or order passed against him by the Adjudicating Authority may appear before the Appellate Authority within three months of the date the said decision or order is communicated to such person.

According to Section 107(2) of the CGST Act, the GST Department has six months to file an appeal with the Appellate Authority.

According to Section 107(4), if the Appellate Authority is satisfied that the appellant was prohibited from filing the appeal within the aforementioned term of three months or six months, as the case may be, he may allow it to be presented within a further period of one month.

Pre-Deposit and the Effects on Recovery

As per Section 107(6) of CGST Act, no appeal shall be filled, unless the appellant has paid: –

• In its whole, the admitted liability (including tax, interest, fee, and penalty) emanating from the contested order as admitted by him and
• In the event of a dispute emerging from the aforementioned order, a sum equal to 10% of the outstanding tax amount will be awarded.

For example, if the Department issues a demand order for Rs 50,000 and the appellant agrees to the demand up to Rs 20,000 only when the appellant is required to make a pre-deposit of Rs 23,000 (Rs. 20,000 + 10% of Rs. 30,000) to file an appeal with the Appellate Authority.

Note: Once an appeal is filed, the recovery procedure against the taxpayer is halted.

Non-Appealable Decisions and Order

As per Section 121 of CGST Act, no appeal shall lie against the decisions/order passed by the competent officer, it relates to any of the following: –

• A court order directing the transfer of proceedings from one office to another.
• An order for the seizure or retention of books of accounts, registers, and other papers.
• An order authorizing prosecution under the GST
• The order issued in accordance with Section 80 of the CGST Act for the payment of tax/other sums in installments.