In case of any dispute with respect to tax liability, penalty or an order passed by a GST Officer, taxpayers registered under GST have the option to appeal.
In this article, we look at GST appeal process and different types of appellate authorities in detail.
1. GST Appellate Authority
Appeal By Taxpayers: Appeals under GST is to be filed by the taxpayer within a period of 3 months from the date of communication of order by the GST Officer.
While filing an appeal, the taxpayer would be required to pay the GST tax, interest, fine and penalty as accepted AND deposit a minimum of 10% of the remaining amount in a tax dispute.
Once the appeal is filed, an acknowledgment indicating the appeal number will be issued in Form GST APL 02.
Appeal By Department: On the same footage as above, if the GST Commissioner is not satisfied with the legality and reasoning of the order passed by adjudicating authority (i.e GST Officers), they GST Commissioner can suo-moto can file an application before the Appellate Authority.
This can be done within six months from the date of communication of decision or order in Form APL GST 03 electronically.
A maximum of 3 adjournments will be granted to each party on showing reasonable cause to be recorded in writing.
2. Revisional Authority
Revisional authority has the powers to stay the operation of any decision or order if he considers that such a decision or order passed by any officer subordinate to him is erroneous and prejudicial to the interest of the revenue.
After giving the concerned person an opportunity of being heard and after making a further necessary inquiry, the Revisional Authority can pass an order within 3 years of passing an order, which was appealed to be enhanced, modified or annulled.
Revisional authority will not have the power to pass an order if:
– Period of six months is not expired; or
– Period of three years has been expired; or
– Revisionary order has been already passed.
The order passed by Revisional Authority would supersede (nullify) the order passed by Appellate Authority or Adjudicating Authority (i.e. GST Officer).
3. GST Appellate Tribunal (GST-AT)
Appeal by Taxpayer: An appeal to the Appellate Tribunal can be filed online, within 3 months of passing an order. Appeal to Appellate Tribunal must be filed in Form GST APL 05 along with a fee of Rs.10,000 for every 1 lakh of tax amount in dispute.
Appellate tribunals may refuse admission of appeal, wherein the disputed amount of tax, interest, penalty, etc. not exceed Rs.50,000.
While filing an appeal, the taxpayer would be required to pay the GST tax, interest, fine and penalty as accepted AND deposit a minimum of 20% of the remaining amount in a tax dispute.
Appeal by Department: If the GST Commissioner is not satisfied with the legality and reasoning of the order passed by Appellate Authority Or Revisional Authority, then GST Commissioner can suo-moto can file an application before the GST-AT within six months from the date of communication of such decision or order.
The Appellate Tribunal has powers to confirm, modify or annul a decision or order.
The Appellate Tribunal also has the power to remand the case back to the appellate authority or the Revisional Authority or the original adjudicating authority.
4. Appeal to Courts
Taxpayers have the rights to appeal an order with the Courts. High Court may admit an appeal if it is satisfied that the case involves a substantial question of law.
However, no appeal can be filed with the High Court if an order is passed by National Bench or Regional Benches.
To file an appeal before the High Court, an appeal memorandum must be filed, precisely stating the substantial question of law involved, within 180 days from the date of receipt of order appealed against accompanied by prescribed fee.
Taxpayers also have the rights to appeal with the Supreme Court in case of any judgement or order passed by National Bench, Regional Benches of Appellate Tribunal or High Court.