Under Goods and Services Tax (GST) legislation, taxpayers have the right to appeal decisions made by tax authorities and courts. The GST framework outlines specific procedures, deadlines, and regulations for submitting such appeals. This guide provides an overview of the key rules, stages, and timeframes involved in the GST appeals process.

Recent Developments

July 3, 2025: The Central Board of Indirect Taxes and Customs (CBIC) released a circular detailing the procedures for reviewing, revising, and appealing orders issued by the Common Adjudicating Authority (CAA). It specified that the Principal Commissioner or Commissioner of Central Tax would serve as the reviewing authority under Section 107 and the revisional authority under Section 108 of the CGST Act, 2017.

May 14, 2025: The GSTN published an advisory stating that the appellate authority must approve the withdrawal of an appeal if submitted after the final acknowledgment is issued. Upon approval, the appeal status changes from 'Appeal submitted' to 'Appeal withdrawn'. For waiver applications under Section 128A, no appeal should be pending. Taxpayers must upload a screenshot of the appeal case folder showing 'Appeal withdrawn' when filing or updating a waiver application.

December 21, 2024: During its 55th meeting, the GST Council proposed amendments to Section 107(6) and Section 112(8) of the CGST Act, 2017. These amendments aim to mandate a 10% pre-deposit for appeals filed before the Appellate Tribunal, specifically for cases involving only a penalty demand without a corresponding tax demand. These changes will be implemented through subsequent circulars or notifications.

What Defines an Appeal?

An appeal, in any legal context, represents a formal request submitted to a superior court to overturn a judgment made by a lower court. Such proceedings typically arise from legal disagreements or disputes.

Understanding Tax Disputes

All laws, including tax statutes, impose various obligations on individuals and entities. These obligations generally fall into two categories: those related to tax payments and those related to procedural compliance. Tax officers periodically verify taxpayer adherence through audits, anti-evasion measures, and examinations. Discrepancies or perceived non-compliance can lead to disagreements, which then escalate into disputes requiring resolution.

Initially, these disputes are resolved by a departmental officer through a quasi-judicial process, culminating in an initial order (e.g., assessment order, adjudication order, or order-in-original). The GST Act defines an "adjudicating authority" as any body authorized to issue orders or decisions under the Act, excluding the Board, the First Appellate Authority, and the Appellate Tribunal. Therefore, any decision or order issued under the Act constitutes an act of adjudication. Common examples include orders for registration cancellation, best judgment assessments, refund claim decisions, and the imposition of penalties.

Hierarchical Stages of GST Appeals

The GST appeal process follows a structured hierarchy, moving from lower to higher authorities:

| Appeal Level | Orders Issued By | Appeal Filed With | Relevant Sections of Act | |---| | First | Adjudicating Authority | First Appellate Authority | 107 | | Second | First Appellate Authority | Appellate Tribunal | 109, 110 | | Third | Appellate Tribunal | High Court | 111-116 | | Fourth | High Court | Supreme Court | 117-118 |

It is important to note that appeals do not need to be filed with both CGST and SGST authorities simultaneously. Under the GST Act, officers from both CGST and SGST/UTGST jurisdictions can issue orders. An order issued under CGST is also considered applicable to SGST. However, any subsequent appeal, review, revision, or rectification against an order passed by a CGST officer must be directed solely to CGST officers. Likewise, for orders issued by an SGST officer, these actions must be pursued only with the appropriate SGST officers.

How to File a GST Appeal

For detailed instructions on submitting an appeal to the Appellate Authority under GST, please refer to the procedure outlined here.

Deadline for Submitting a GST Appeal

Applicants are required to file an appeal with the Appellate Authority within three months from the date they receive communication of the contested order. The Appellate Authority has the discretion to allow a delay of up to one additional month if a valid and sufficient reason for such delay is provided.

Standard Regulations for GST Appeal Submissions

All GST appeals must be submitted using the designated forms and accompanied by the necessary fees. The fee structure includes the full amount of tax, interest, fine, fee, and penalty, as acknowledged by the appellant in the challenged order. Additionally, a sum equivalent to 10% of the disputed amount is required. However, no fees are applicable when an appeal is filed by a GST officer or the Commissioner of GST.

Representation by an Authorized Agent

Individuals required to appear before a GST Officer, the First Appellate Authority, or the Appellate Tribunal may appoint an authorized representative to act on their behalf, unless personal appearance is explicitly mandated by the Act. Eligible authorized representatives include:

• A family member
• A permanent employee
• An advocate licensed to practice in any Indian court
• A chartered accountant, cost accountant, or company secretary holding a current certificate of practice
• A retired Group-B gazetted officer or higher from any State Government Tax Department or the Excise Department
• A certified tax return preparer

It is important to note that retired officers are prohibited from representing a person for one year following their retirement date.

Limitations on Filing Appeals

The Board or State Government, upon the Council's recommendation, may establish monetary thresholds for appeals initiated by GST officers to manage appeal volumes and mitigate needless litigation costs.

Not all decisions are open to appeal. Specifically, appeals cannot be filed against the following decisions issued by a GST officer:

• Orders transferring proceedings between officers;
• Orders for seizing or retaining financial records and other documents;
• Orders authorizing prosecution under the Act; or
• Orders permitting tax and other payments in installments.

If an individual is dissatisfied with a decision or order made by an adjudicating authority under GST, they can first appeal to the First Appellate Authority. Should they remain unsatisfied with that decision, they may then escalate the appeal to the National Appellate Tribunal, followed by the High Court, and ultimately the Supreme Court.

Option to Withdraw a GST Appeal

During the 48th GST Council meeting, a provision was introduced to allow the withdrawal of previously filed GST appeals. This initiative aims to decrease the volume of litigation handled by appellate authorities. Consequently, Rule 109C was incorporated into the CGST Rules through Notification No. 26/2022-Central Tax.

Rule 109C permits an applicant to submit a withdrawal application for an appeal at any point before the issuance of a show-cause notice or an order under Section 107(11), whichever occurs first. This provision applies to appeals originally filed using Form GST APL-01 or Form GST APL-03. The withdrawal request must be submitted via the new Form GST APL-01/03W.

However, if the final acknowledgment in Form GST APL-02 has already been issued, the withdrawal of the appeal mandates approval from the appellate authority. This authority is required to decide on the withdrawal application within seven days of its submission. Any subsequent appeal filed by the appellant after a withdrawal must still adhere to the time limits stipulated under Section 107.

Updated Structure for Multi-Jurisdictional GST Conflicts

On June 24, 2025, the CBIC released a significant directive, CGST Circular No. 250/07/2025-GST, which clarified the review process for GST disputes. As per this circular, the Principal Commissioner or Central Tax Commissioner will function as the reviewing authority under Section 107 of the CGST Act. The Common Adjudicating Authorities (CAAs) operate under and report to the Principal Commissioner.

This official will also possess revisional powers under Section 108 of the CGST Act, both functions being crucial for addressing appeals against demand or adjudication orders. Appeals challenging orders from CAAs will be managed by the Commissioner (Appeals), who holds territorial jurisdiction over the Principal Commissioner or Commissioner of Central Tax overseeing the adjudicating authority.

Previously, a formal legal framework was absent concerning which authority could review or hear appeals against decisions made by the CAA. Previous GST Circulars did not cover the post-adjudication process, which resulted in jurisdictional ambiguities, prolonged delays, and procedural irregularities, particularly in high-stakes tax evasion investigations.