Know All About Appeals under GST

The right to appeal is right provided to any aggrieved person under statute. A person may go for an appeal if he has not agreed with the viewpoints or orders issued by the tax authorities. In this article, we shall discuss the topic appeals under the GST act. 

Contents of the Article

• What is Appeal?
• What is the need to file an appeal?
• Who can file an appeal?
• What are the levels of appeals under GST?
• What is the time limit prescribed to file an Appeal?
• What is the concept of pre-deposit?

What is Appeal?

An appeal under any law is a process of challenging a judgment or order issued by a lower authority or court before its superior authority (Higher court). The right to appeal is a statutory right and any person aggrieved by any order or decision passed under the GST acts has such right.

What is the need to file an appeal?

The Taxpayers are required to comply with the obligations issued under GST laws. Those obligations can be broadly divided into categories, such as:

• Tax-related obligations and
• Procedure-related obligations

To ensure the compliance of aforesaid obligations, the tax officer may conduct scrutiny or audit or anti-evasion, etc…, In such cases, there may be a situation of actual or perceived non-compliance. If the difference in view continues, it shall result in a dispute, which is then required to be resolved.

The Taxpayer and the tax officer may have different opinions and viewpoints on the respective facts and laws and the taxpayer may not agree with the “adjudication order” so passed by the tax officer and It is equally possible that the Department may itself not be in agreement with the adjudication order in some cases, that’s the reasons for which the statute has provided further channels of appeal, to both sides.

Who can file an appeal?

Any person who is aggrieved by a decision or order passed against him by an authority can file an appeal to its superior Authority.

However, no appeals shall be filed against the following orders: 

• an order passed by the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer;
• an order passed to pertain the seizure or retention of books of account, register, and other documents; or
• an order passed to sanction prosecution under the Act; or
• an order passed under the provisions of section 80-payment of tax in installments.

What are the levels of appeal under GST?

Appeal level	Section No	Order passed by	Appeal to
Level-I	107	Adjudicating authority	Appellate authority
Level-II	109,110	Appellate authority	Appellate Tribunal
Level-III	111-116	Appellate Tribunal	High Court
Level-IV	117-118	High Court	Supreme Court

What is the time limit prescribed to file an Appeal?

• Time limit to file an appeal before the Appellate Authority- the aggrieved person has to file an appeal within 3 months from the date of communication of order or decision.
• Time limit to file an appeal before the tribunal- the aggrieved person has to file an appeal before the tribunal within 3 months from the date of receipt of the order appealed against.
• Time limit to file an appeal before High court- the aggrieved person has to file an appeal before High court within 180 days from the date of receipt of the order appealed against. However, on the occasion of producing sufficient cause, the High Court may condone the further delay.

What is the concept of pre-deposit?

To discourage the frivolous appeals and to safeguard the bonafide interests of both the taxpayer and the revenue, the GST law requires the appellant to pre-deposit the 

• amount of tax, interest, fine, fee and penalty in full, as is admitted by him, arising from the impugned order and
• a sum equal to 10% of the disputed amount but maximum up to 25 Crore in each CGST Act and SGST Act and if the appeal is being filed under IGST Act then up to 50 crores (in case of appeal before appellate authority) and 20% of the disputed amount  but maximum up to Rs.50 crore in CGST Act and SGST Act  and if the appeal is being filed under IGST Act then up to 100 crores (in case of appeal before tribunal).