The Goods and Services Tax (GST) system in India has brought substantial changes in the area of indirect tax. But like any tax law, disputes can arise between taxpayers and tax authorities. If you disagree with a decision or order passed by a GST officer, you have the right to appeal. Filing an appeal gives you a chance to challenge the decision and seek relief.
This article will deal with and explain how to file an appeal under GST in simple terms, including the types of appeals, process, time limits, fees, documents needed, and tips to avoid mistakes.
What is an Appeal in GST?
An appeal is a formal request to a higher authority to review and change the decision of a lower authority. Under GST, appeals can be filed if you disagree with orders like assessment, demand notices, penalties, or any decision that affects your tax liability.
Types of Appeals under GST
Appeals under GST can be broadly divided into these categories:
- First Appeal – Filed before the Appellate Authority under Section 107 of the CGST Act, 2017.
- Second Appeal – Filed before the Appellate Tribunal (GSTAT) if you are unhappy with the decision of the Appellate Authority.
- Appeal to High Court/Supreme Court – If still unsatisfied, you can approach the High Court on matters involving substantial questions of law, and then the Supreme Court if needed.
This article focuses on the First Appeal under Section 107, as it is the initial and most common stage for challenging GST orders.
Who Can File an Appeal?
You can file an appeal if you are:
- A registered taxpayer or any person aggrieved by a decision/order passed by an adjudicating authority under GST.
- The Commissioner of GST can also file an appeal against orders unfavourable to the revenue.
When to File an Appeal?
You must file the appeal within 3 months (90 days) from the date of communication of the order. The Appellate Authority can grant an extension of up to 1 additional month (30 days) if you can show sufficient cause for delay.
For appeals filed by the GST Department (Commissioner), the time limit is 6 months from the date of communication of the order.
Where to File an Appeal?
- Appeals are filed online through the GST portal (www.gst.gov.in) in Form GST APL-01.
- The appeal goes to the Appellate Authority having jurisdiction over your GST registration.
Pre-deposit Requirement
Before the appeal is admitted, you must pay:
- 100% of the admitted tax, interest, fee, or penalty (i.e., the part you accept).
- 10% of the disputed amount, subject to a maximum of ₹25 crores.
If you do not pay the pre-deposit, your appeal will not be admitted.
How to File an Appeal – Step-by-Step Guide
Here is a simple guide to filing an appeal in GST:
1. Prepare Your Documents
Keep these documents ready:
- Copy of the order you want to appeal against.
- Grounds of appeal (why you disagree).
- Details of payments made (admitted liability + pre-deposit).
- Any supporting evidence or documents you want the Appellate Authority to consider.
2. Log in to the GST Portal
- Visit www.gst.gov.in and log in with your GSTIN and password.
3. Navigate to Appeal Filing Section
- Go to Services > User Services > My Applications > Appeals.
4. Select Appeal to Appellate Authority
- Choose Form GST APL-01 for filing the first appeal.
5. Fill Form GST APL-01
- Enter order details: Order Number, Date of Order, and the authority who passed the order.
- Provide reasons/grounds of appeal clearly.
- Upload documents in PDF or JPEG format (the maximum file size per document is typically 5 MB).
6. Make Pre-Deposit Payment
- Pay the admitted amount and 10% of the disputed tax using challan GST PMT-06.
- Mention the payment details in the appeal form.
7. Review and Submit
- Review the filled form and attached documents carefully.
- Submit the form online using your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
8. Acknowledgement
- After submission, an Acknowledgement Reference Number (ARN) is generated as proof.
- The Appellate Authority will issue an acknowledgement in Form GST APL-02.
What Happens After Filing an Appeal?
Once you file the appeal, the Appellate Authority will:
- Issue a notice for a personal hearing.
- Allow you (and the department) to present arguments.
- Examine your documents and evidence.
- Pass an order in Form GST APL-03, either confirming, modifying, or annulling the original order.
If the Appellate Authority feels additional documents are needed, you may be asked to furnish them.
Important Points to Remember
- File an appeal within the time limits to avoid dismissal on the grounds of delay.
- Clearly state grounds of appeal—avoid vague or generic statements.
- Maintain proper records of orders, challans, and correspondence.
- Pay the pre-deposit amount before filing—appeals without pre-deposit are not valid.
- Attend hearings diligently—failure to appear can result in ex parte orders.
- Appeals can be withdrawn before the final order is passed.
Fees for Filing an Appeal
For taxpayers, there is no government fee for filing an appeal. However, you will bear incidental costs like professional fees if you hire a consultant or advocate.
Can You Apply for a Stay on Recovery?
Yes, if you have filed an appeal and paid the pre-deposit, recovery proceedings for the balance disputed amount are automatically stayed till your appeal is decided. This prevents undue hardship during the appeal process.
Grounds for Rejection of Appeal
The Appellate Authority can reject your appeal on such grounds:
- The appeal is filed late without sufficient cause.
- Pre-deposit requirements are not fulfilled.
- The appeal is incomplete or lacks necessary documents.
- The appellant is not an aggrieved person under GST law.
Conclusion
Filing an appeal under GST is a structured and time-bound process. It is essential to understand the requirements, collect the proper documents, pay the necessary pre-deposit, and submit the appeal correctly on the GST portal. By following the prescribed process carefully, you can protect your rights and get a fair hearing for your grievance.
Appeals help ensure accountability of tax authorities and provide taxpayers with a mechanism to seek redressal. If you are not confident in handling the process yourself, consider consulting a GST practitioner or tax professional for guidance.
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