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Appeal Before GST Appellate Authority

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The appeal before the GST Appellate Authority

In India, to have a crystal clear flow of goods intra and inter-state, reduction of corruption and for efficient tax collection, the goods and service tax (GST) was introduced. It is a destination based tax. We need to follow the strict rules of compliance. Since everything is recorded and tracked, it is the obligation of the taxpayers to maintain and declare the information correctly.

In case of a dispute in respect with the tax liability, penalty or an order given by the GST Officer, the taxpayer has the right to appeal.

The Tax laws impose obligations which can be broadly categorized into two kinds, tax, and procedure related. Sometimes, there is a conflict related to compliance and tax evasions. In such a case, the initial dispute resolution is done by the GST officer. If the person is unsatisfied with the order, then an appeal is filed to the GST First Appellate Authority.

GST Appellate Authority

A person, who is discontented with the order of the GST Officer or the adjudicating officer, can further appeal against such order to the First Appellate Authority. It can be filed within three months from the date of communication of order given by the GST Officer.

Appeals

There is a four-level appeal structure to provide relief to the taxpayers.

Level of Appeal

Order

Appeal

Sections

1st

Adjudicating Authority

First Appellate Authority

Section 107

2nd

First Appellate Authority

Appellate Tribunal

Section 109, 110

3rd

Appellate Tribunal

High Court

111-116

4th

High Court

Supreme Court

117-118

Fees

The appeals have to be made in the prescribed forms, and the minimum fees should be paid.

The fee should be 100% of the tax amount, interest, fee, penalty, arising from such challenged order and 10% of the disputed amount. The 10% can increase up to 25%, where the disputed tax amount is above Rs. 25 Crore.

In case the Commissioner of GST or an officer is the filing an appeal, then the prepayments of fees are not required to be made.

Who has the authority to file an appeal to the Appellate Authority?

The following people can file an appeal to the Appellate Authority

  • Aggrieved by order of the adjudicating authority under section 107(1).
  • Department under section 107(2).

However, according to Section 121, some decisions are not appealable.

Time Limit for filing Appeal against GST order

In case of Appeal by an individual, appeal to the prescribed Appellate Authority has to be done within three months from the date of the communication of the order of the GST officer

In case, an appeal by the Department of Revenue, the time limit for filing the appeal is six months from the date of communication of the order.

If the Commissioner of the CGST/SGST is of the opinion that the order passed by the adjudicating authority is not satisfactory, i.e. it is not legal and proper, then he can order any subordinate officer to apply to the Appellate Authority within six months from the order.

Condonation in delay

The Appellate Authority has the power to condone a delay of up to 1 month from the prescribed period for filing an application if the parties show sufficient cause for delay.

Forms

  • GST APL-01- for the assessee
  • GST APL-03- for the department

Procedure of Appeal

In case of Individual

  • Submit Applications within three months of the communication of order in GST Form along with documents for grounds of appeal (within 7 days of filing an appeal), a form of verifications, a certified copy of the demand order, and challan copy for the pre-deposit.
  • An appeal can be submitted either electronically or offline
  • A provisional Statement is issued after submission
  • Under GST APL-02, a final acknowledgment is issued.
  • The appeal is deemed to be filed after the Final acknowledgments done under GST APL-02

In the case of Department

  • Submission of applications within the period of 6 months of the communication of order in GST APL-03 along with the relevant documents like grounds of appeal, a form of verifications, certified copy of demand order within 7 days of the filing of the appeal.
  • It can be done electronically and offline also.
  • Thereafter, an appeal number will be generated.

Adjournments

The First Appellate Authority has the power to adjourn the hearing if there is sufficient cause of delay. It can only be allowed three times.

The time limit for the decision

The decision has to be given within 1 year of filing an appeal. And if there is a stay of the order, then the period of stay will be excluded.

Payment

It is mandatory to make payments before the appeal is filed to the First Appellate authority. The appeal cannot be filed if the appellant has not deposited

  • The tax, interest, fee, and penalty which is arising from the impugned order.
  • 10 % of the remaining amount of the tax which is disputed

The order of the First Appellate Authority

  • The First Appellate Authority can allow the appellant to add grounds of appeal which were not included in the appeal if it feels the omission was not done willingly.
  • The First Appellate Authority has the power to confirm, modify and annul the order but it cannot refer the case back to the authority.
  • If the decision of the first appellate authority results in the increase in fee or penalty or leads to a decrease in the input tax credit, then the taxpayer will be given notice and an opportunity to present himself before such order is pronounced.
  • The First Appellate Authority can also increase the tax or require the taxpayer to make payment of wrongfully availed input tax credit after giving them show cause notice. This order has to be passed within the time limit prescribed under Section 73 or 74.
  • The order has to be in writing and mention all the key points, the decision and the reasons for such decision.

Filing an appeal to the GST Appellate Authority with LawyerINC

  • Once you post a query, our representative will get back to you and a lawyer will be assigned to your case
  • Our Lawyer will contact you and explain the whole procedure and will understand the details of your case
  • Once the objectives are set forth, the lawyer shall draft an appeal
  • Once an appeal is drafted, it will be filed
  • The Legal proceedings will be initiated.

Why Choose LawyerINC?

  • Free consultation for Enquiry
  • Renounced Legal Experts at your reach
  • End to End services
  • Assistance in filing the appeal
  • We'll provide ongoing support and we'll be available at your service throughout the case.

Frequently Asked Questions

  • 1. Can a taxpayer be represented by an authorized representative before The Court?

    Unless the taxpayer has to appear personally before the Court, he can appoint a representative to appear on his behalf. An authorized representative can either be an employee, lawyer, cost accountant, relative, any Gazetted officer chartered accountant, company secretary, or a tax return preparer.

  • 2. Under which cases, appeals cannot be filed?

    An appeal cannot be filed where the matter is transferred from one officer to the other officer, relates to prosecution order payment of taxes or other amounts order and seizure or retention of the books of accounts order.

  • 3. Can The Commissioner of CGST revise an order passed by himself?

    The Commissioner does not have the power to revise an order which he himself passed. The GST officer who is subordinate to the Commissioner can appeal against the order of the First Appellant Authority. The appeal should include the main concern, and the Appellate Authority shall treat it as a proper appeal.

  • 4. Define the powers of the First Appellate Authority?

    It has the power to condone the delay beyond the prescribed period. It can further include some additional grounds in the appeal.

  • 5. What is the format of appeal before the Appellate Authority?

    According to Rule 109, of the CGST Rules, Appeal can be filed in Form GST APL-03 accompanied with the relevant documents.

  • 6. Can the Appellate Authority remand the case back to the Adjudicating Authority?

    As per Section 107 (1) of the CGST Act, the Appellate Authority has the power to make changes to the decision or order appeal against, but it cannot refer the case back to the adjudicating authority that has given the decision.

  • 7. Can the Commissioner appeal to the First Appellate Authority?

    Yes, the Commissioner can appeal to the First Appellate Authority within 6 months from order.

    The Commissioner can request the officer to examine the order. The commissioner can direct his subordinate officer to apply to the First Appellate Authority within 6 months from the date of order.

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