Appealing Against GST Demand Orders: A Comprehensive Guide
This guide provides a detailed overview of the process for appealing against demand orders under GST in India. It covers the essential steps for filing the initial appeal, responding during appeal proceedings, and requesting rectification of an appeal. The article also includes recent updates on appeal procedures and addresses common taxpayer questions regarding deadlines and pre-deposit requirements for challenging adjudicating authority decisions.
Taxpayers, whether registered or unregistered, have the right to file an appeal if they disagree with an adjudicating authority's decision. This appeal must be submitted within three months of the order's communication date.
Recent Updates
February 1, 2021: Union Budget 2021
Appeals against orders concerning the detention and seizure of goods or conveyances under Section 107 of the CGST Act now require a pre-payment of 25% of the penalty. The effective date for this provision is yet to be announced.
April 3, 2020
A deadline extension was granted, moving compliance and completion dates to June 30, 2020, for all deadlines originally falling between March 20, 2020, and June 29, 2020. This extension applies to the filing and processing of appeals before the GST appellate authority, High Courts, and the Supreme Court.
Filing Your Initial Appeal Against a Demand Order
Before submitting an appeal, certain prerequisites must be met:
- The adjudicating authority must have issued an order for the taxpayer to be eligible to appeal to the Appellate Authority.
- A PDF reader software must be installed on your computer to open the necessary PDF files.
Step 1: Access the GST Portal
Log in to the GST portal.
Step 2: Navigate to My Applications
Go to Services > User Services > My Applications. On the 'My Applications' page, select 'Appeal to Appellate Authority' as the application type, then click 'New Application'. The 'GST APL-01 - Appeal to Appellate Authority' page will appear.
Step 3: Specify Order Details
Choose 'Demand Order' as the order type and enter the corresponding order number. Click 'Search' to display the relevant orders.
Step 4: Select Dispute Categories
From the dropdown list, select one or more categories of the case under dispute and click 'Add'. The date of communication and the period of dispute can be modified by the taxpayer. Possible case categories include:
- Refund
- Registration
- Assessment
- Others
Step 5: Upload Annexure to GST APL-01
Click the 'click here' link on the order page to download the GST APL-01 template. Enable editing, update the required details in the annexure, save the file as 'AplAnnexureTemplate.pdf', and then upload it.
Step 6: Update Disputed Amount and Payment Details
Click the 'Disputed amount/Payment details' button on the order page.
- Enter the disputed amount, categorized by tax head, late fee, or interest.
- The demand created and admitted amounts will be automatically displayed. Note that 'Demand admitted' equals 'Demand created' minus 'Amount disputed', meaning the disputed amount cannot exceed the demand created.
- Enter the pre-deposit percentage, which is a minimum of 10% of the disputed amount by default. A lower percentage requires authority approval. The 'Details of Payment required' table will auto-fill accordingly.
- Enter the place of supply details for the admitted demand amount by clicking the 'Integrated Tax' hyperlink.
- Payment can be made using cash or Input Tax Credit (ITC) balance available in the electronic ledger.
Step 7: Attach Supporting Documents
If necessary, add supporting documents. Provide a description for each document and select the file for upload. Ensure files adhere to the specified criteria (e.g., format, size limits).
Step 8: Preview Your Application
Click the 'Preview' button to download a PDF file of your application. Review the details to ensure accuracy before proceeding.
Step 9: Final Submission
Select the declaration checkbox, choose the authorized signatory, and enter the place. Click 'Submit' and proceed to file using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). A confirmation message will appear upon successful submission.
Submitting a Reply During Appeal Proceedings
During the appeal review or hearing, the Appellate Authority may request a reply from the appellant. Follow these steps to submit your response:
Step 1: Access the GST Portal
Log in to the GST portal and navigate to Services > User Services > View Additional Notices/Orders.
Step 2: Submit Reply to Notice
On the case details page for the specific Case ID, go to the 'Notice' tab and click 'Reply'. This will open the 'Submit a reply to the notice' page.
Step 3: Upload and File Reply
Upload your reply file and any supporting documents. Check the verification checkbox, then click 'File Reply'. A warning message will appear; click 'Proceed' and submit using DSC or EVC. An acknowledgment will confirm the successful upload.
Requesting Rectification of an Appeal
To request a rectification of an appeal, follow these steps:
Step 1: Access the GST Portal
Log in to the GST portal.
Step 2: View Additional Notices/Orders
Navigate to Services > User Services > View Additional Notices/Orders. On this page, click 'View'. The Case Details page will then be displayed.
Step 3: Initiate Rectification
Click on the 'Orders' tab and select 'Initiate rectification'.
Step 4: Submit Rectification Request
The 'Initiate rectification' page will appear. Choose the relevant reason for rectification and upload any necessary supporting documents. Click 'Initiate' and submit using either DSC or EVC. A message confirming the rectification request number will pop up upon successful submission.
Understanding Appeal Statuses
Below is a table outlining various appeal statuses:
| Sr.No. | Description | Status |
|---|---|---|
| 1 | Appeal form successfully filed | Appeal submitted |
| 2 | Appeal form successfully admitted | Appeal admitted |
| 3 | When an appeal form is rejected | Appeal rejected |
| 4 | When hearing notice is issued | Hearing notice issued |
| 5 | When counter reply received against a notice | Counter reply received |
| 6 | Issue of Show cause notice | Show cause notice issued |
| 7 | Appeal is confirmed/modified/rejected | Appeal order passed |
| 8 | Adjournment of hearing to next date | Adjournment granted |
| 9 | Rectification application filed | Rectification request received |
| 10 | Rectification application is rejected | Rectification request rejected |
| 11 | An appeal in order is rectified | Rectification order passed |
Common Questions Regarding Appeal Filing Against Demand Orders
What if the appeal is not filed within three months?
The Appellate Authority may extend the deadline by one month if it is satisfied that the taxpayer had a sufficient reason for the delay in filing the appeal.
Is a 10% pre-deposit of disputed tax mandatory, and what happens to the disputed tax balance?
Yes, a minimum of 10% of the disputed tax must be paid as a pre-deposit before an appeal can be filed. Once the appeal status changes to 'Admitted', the GST portal marks the disputed amount as non-recoverable.