GST, Outsourcing

GST – Goods and Service Tax Appeals

In this article, we are going to talk about appeal provisions provided under Central Goods and Service Tax Act, 2017. If any person is not satisfied with the order passed by any court of law, then they have an option give an application in any specified higher authority with a view to seeking any relief from such verdict passed by the lower authority. These applications are known as appeals made in such higher authority. This appeal filed under GST is to be filed in the prescribed form as it will be filed in that manner as prescribed under the laws.

Who can file an appeal?

Under the CGST Act provisions appeals are to be submitted to notified appellate tribunals, and such appeals can be filed by any of the two people:

  1. Any aggrieved person who is not satisfied with the order passed against him by any adjudicating authority under this Act, SGST Act, UTGST Act or Service tax Act.
  2. Commissioner of Central Tax can direct any of their subordinate to file an appeal either on their own or on the suggestion of State Tax or Union Territory Tax Commissioner, in any case the they if they have called for and examined the proceeding’s records of the said order and is not satisfied and has raised questions on the said verdict.

Even if the appeal is filed by the commissioner, it is still treated as a complaint from the aggrieved person, and all provisions which apply in the case of an appeal filed by the aggrieved party will apply in this case too.

Timeline for filing an Appeal

If the appeal is filed by the aggrieved person against whom the order is passed.

In this case, the appeal is to be filed within three months from the date of communication of such order.

If the appeal is filed by Commissioner.

In this case, the appeal is to be filed within six months from the date of communication of such order.


If the appellate authority is of the opinion that any delay after the expiry of the said period of 3 months and 6 months is due to valid reasons, then they have a reason to provide an extension for a further period not exceeding one month.

Timeline for disposal of an Appeal

Every appeal filed shall be disposed of within a period of one year. However, if any stay is imposed on the appeal proceedings than the period of such stay will not be included while computing this period of one year.

Conditions relating to appeals under GST

  1. Payment Provisions before Appeals: – If any person wishes to file an appeal against any order, then there are certain payment provisions stated that are required to be fulfilled. Such appellant is required to make payment of the below-stated amount before starting any appeal application proceedings: If the aggrieved person has acknowledged or admitted to the liability in the form of tax, interest thereon, fine or penalty arising out of such order, then made payment of such amount in full. Ten percent of the amount of tax not acknowledged by the aggrieved party against which such appeal is filed.
  2. If the above-stated payment is made, then the recovery proceedings will be stopped for the time period of such appeal proceedings.
  3. Adjournment Provisions: – Any such appeal proceedings can be adjourned by the authorities on the application of any of the parties if they show sufficient cause for such adjournment. However, such adjournment can be granted for only three times over the course of such appeal provisions.
  4. Appellant has an option to add any additional ground for appeal in an ongoing appeal proceeding. However such ground will only be allowed by the appellate authority only if it has sufficient reason to believe that such omission at the time of filing of an appeal was not intentional.

Order of Appellate Authority

Appellate authority after conducting proper inquiry shall pass an order, either confirming, modifying or annulling the order appealed against, and such order shall be in writing.

Order communicated to:

Once the appeal is finalized, the appellate authority is required to communicate the same to:

  • The Appellant
  • The respondent, and
  • The adjudicating authority.

Along with this communication, a copy of the passed order is also required to be given to the Joint Commissioner or any other authority designated by him.

Opportunity to appellant of showing Cause

If there is any change expected in the liability of the appellant after the final verdict of the appellate authority then such an order can only be passed after an opportunity of showing cause for not increasing liability is given to the appellant. Such increase in the liability of appellant can be a result of any of the following reasons:

  1. The increase in the amount of penalty or fine relating to confiscated goods.
  2. Confiscating goods of higher amount
  3. Reducing the amount of refund, or any amount erroneously refunded.
  4. ITC wrongfully availed or reducing the ITC amount.
  5. Tax not paid by appellant, or short paid.