“GST Disputes How To File An Appeal”

Abstract

The Goods and Services Tax (GST), introduced in India in 2017, revolutionized the indirect tax system by bringing multiple taxes under one unified framework. However, disputes under GST—whether related to tax assessment, refunds, penalties, or input tax credit—are inevitable. The GST law provides a structured appellate mechanism to address such grievances fairly and transparently. This blog explains the step-by-step process of filing an appeal, the hierarchy of appellate authorities, timelines, requirements such as pre-deposits, and practical tips to avoid common pitfalls. By understanding the GST appellate system, taxpayers can safeguard their rights and ensure compliance with procedural rules.

Introduction

In the world of taxation, disputes are bound to arise due to differences in interpretation, classification of goods and services, procedural lapses, or even errors by tax officials. The Goods and Services Tax (GST) is no exception. While the law was framed to simplify the indirect tax system, complexities still exist, leading to conflicts between taxpayers and the authorities.

For businesses, receiving an adverse order under GST can have serious financial implications—be it additional tax demand, penalties, or rejection of refund claims. Thankfully, the GST law does not leave taxpayers helpless. It provides a robust mechanism for appeals, ensuring justice through higher scrutiny of disputed orders.

Filing an appeal under GST is not merely a formality—it is a legal right. But to exercise it effectively, one must understand the correct process, time limits, documentation, and the role of each appellate authority. Let us now dive deep into how a GST appeal works in India.

What is a Demand Order under GST?

A demand order under GST (Goods in Addition Services Tax) is issued by tax authorities when there is a shortfall in tax payment, incorrect utilization of input tax credit, or any extra non-compliance with GST laws. The Demand, besides recovery provisions, is initiated to ensure that the correct amount of tax is paid.

Eligibility to appeal against Demand Order under GST

Taxpayers recorded for GST, or unregistered individuals, who disagree with an order or decision from an adjudicating authority can appeal to the Appellate Authority within three months of the order's issuing or communication. An appeal is only conceivable after the adjudicating authority has issued a formal order. Appeals against demand orders are subject to the following additional conditions:

1. A pre-deposit of at least 10% of the disputed tax is required by law before filing an appeal. However, authorities can modify this percentage to a lower amount.

2. Appeals against demand guidelines can be filed using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Companies and LLPs are required to use a DSC for such appeals.

How do you file the first appeal against the Demand Order?

Conditions required to initiate an appeal:

1. The taxpayer is eligible to file a petition to the Appellate Authority only if an order has been issued by the umpiring authority.

2. Ensure that a PDF reader is installed on your processor to access the PDF file containing the order.

Step-by-step Procedure:

Step 1: Access the GST portal besides logging in.

Step 2: Navigate to Services > User Services > My Applications.

On the 'My Applications' page, choose the application type as 'Appeal to Appellate Authority' and click on 'New Application.'

The 'GST APL-01-Appeal to Appellate Authority' page will appear.

Step 3: Specify the order type by means of 'Demand Order' and input the order number. Click on search.

The orders page will be presented.

Step 4: From the drop-down list, select one or more categories of the case under dispute and click on add.

A list of cases will be displayed.

The taxpayer can edit the date of communication and the old-fashioned dispute.

Step 5: Upload annexure to GST APL-01- Click on the 'click here' link on the order page.

Download the GST APL-01 template, update the facts in the annexure, save the file as 'AplAnnexureTemplate.pdf,' and upload it.

Step 6: Update the disputed amount/payment details by clicking on the 'Disputed amount/Payment details' button on the command page.

Enter the amount under dispute by ordering it according to the tax head, late fee, or interest. The amount of Demand created and admitted is automatically displayed.

Note: Demand admitted = Demand created – Amount disputed.

Enter the percentage value of the pre-deposit, set at a minimum of 10% of the amount disputed. 

A lower percentage requires support from the authority, and the 'Details of Payment required' table is auto-filled.

Enter the place of supply facts for the amount of Demand admitted.

Choose the payment method: cash or ITC in the electronic ledger.

Step 7: Add supporting documents if necessary, deliver a document description, and choose the file for upload.

Step 8: Preview the application by ticking on the 'Preview' button. Download the PDF file to verify the details.

Step 9: Proceed to file – Select the statement checkbox, choose the authorized signatory, and enter the place to proceed with filing.

Click submit and advance to file with DSC or EVC. Upon successful submission, an authorization message will be displayed.

How do you reply during an appeal proceeding?

The Appellate Specialist has the option to initiate proceedings and conduct hearings for the resolution of an appeal or may bid the appellant during the review of the tax department's appeal application. To re-join during an appeal proceeding, taxpayers should adhere to the following steps:

Step 1: Log in to the GST portal. In addition, navigate to Services > User Services > View Additional Notices/Orders.

Step 2: On the case details page, through the specific Case ID, select the notice tab, and then click on the reply option. This action opens a page titled 'Submit an account to the notice.'

Step 3: Upload the reply file, attach backup documents, verify the checkbox, and then click on the 'File Reply' button.

A warning message will appear. Click ensue and then submit with DSC or EVC. An acknowledgment will be displayed upon the positive upload of the reply.

How do you file a rectification request of an appeal?

Procedure for Submitting a Rectification Request for an Appeal:

Step 1: Log in to the GST portal.

Step 2: Navigate to Services > User Services > View Additional Notices/Orders. Click on 'View' on the 'Additional Notices/Orders' page.

Upon clicking, the Case Details page will be displayed.

Step 3: Access the 'Orders' tab and select 'Initiate rectification.'

Step 4: The 'Initiate rectification' page will appear. Choose the reason for the applicable rectification and upload any necessary backup documents. Then, click on 'Initiate' and proceed to submit with either DSC or EVC.

Contents of an appeal Form (Rule 20 of GSTAT Rules)

Every form of appeal shall contain:

1. Grounds of Appeal specified concisely and under distinct heads. Grounds of appeal and such grounds shall be numbered consecutively and shall be typed in double space of the paper.

2. Format :

1. Use A4-size paper, double-spaced, neatly typed, and properly paged, indexed, and tagged in a folder.

2. This applies to appeals, cross-objections, stay applications, or other miscellaneous applications.

3. Verification :

1. The appellant, applicant, respondent, or their authorized representative must sign and verify the form of Appeal.

2. Any documents submitted must be certified as true copies by the person signing the form.

Endorsement and verification

Every appeal and its supporting documents must include the name and signature of the authorized representative (if applicable). Every appeal or pleadings shall be signed and verified by the concerned party.

Translated Documents

A document other than English language shall be  accompanied by a translated copy in English. Such translated copy shall be agreed by both the parties or certified to be a true translated copy by the authorised representative. The Proceedings shall not be initiated unless all documents are translate into English.

Procedure on production of defaced, torn or damaged documents.

If a document is torn, defaced, or damaged, the party submitting it must note its condition in the appeal’s index. The officer receiving the document shall verify and put initials on such document.

Conclusion

Upon successful submission, a message will be sent indicating the rectification request number. The appeal process against a GST call order involves following a systematic approach. Taxpayers, whether registered under GST or not, can file an appeal within three months of receiving the notice. The step-by-step procedure outlined here, from accessing the GST portal to submitting germane documents, guides users through filing an appeal and reacting during proceedings, besides initiating rectification requests. But, the complexities involved with GST compliance can be intimidating. Therefore, it is advisable to get help from tax experts who can help safeguard a smooth GST compliance process.

Here are some questions and answers on the topic:

1. What is the procedure for filing an appeal to the

Appellate Tribunal?

An appeal to the ITAT would be in Form No. 36, filed in triplicate. The appeal submission should be made using a paper book consisting of two copies of the order interested against it with one certified copy.

2. What is a power of attorney for a GST appeal?

A Power of Attorney is a legal file that allows an individual (grantor) to delegate specific responsibilities to an extra person (attorney-in-fact). In GST matters, this ensures that tax particles, disputes, and communications with GST powers are handled without delay.

3. What is section 107 of the GST Act?

The State Goods and Services Tax Act or the Union Territory Goods besides Services Tax Act by an adjudicating consultant may appeal to such Appellate Authority as may be agreed upon within three months from the date on which the said result or order is communicated to such person.

4. What is the fee for a GST appeal?

The fee for filing a GST appeal varies, depending on the nature of the appeal and the amount in dispute. For cases concerning tax, interest, or penalties, the fee is generally 10% of the disputed amount, subject to a minimum besides maximum limit. For other cases, a nominal fee may be applicable.