The long-anticipated Goods and Services Tax Appellate Tribunal (GSTAT) is now functional, providing taxpayers, consultants, and businesses with a formal platform for resolving GST disputes.
Here are 10 important takeaways to help you navigate the new appellate process effectively:
1. Filing Timelines
- Taxpayers must file appeals within 3 months of receiving the order.
- The department has 6 months to file.
- A delay of up to 3 additional months may be condoned for valid reasons.
2. Pre-Deposit Requirement
- A mandatory pre-deposit includes the admitted amount plus 10% of the disputed tax.
- The maximum limit is ₹20 crore each for CGST and SGST.
3. Penalty-Only Appeals (Effective April 1, 2025)
- Even in cases with no tax dispute, a 10% pre-deposit of the penalty is required.
4. Appeal Fee Structure
- Appeals attract a fee of ₹1,000 per ₹1 lakh involved, capped at ₹25,000.
- No fee is required for rectification requests.
5. Minimum Appeal Value
- Appeals involving less than ₹50,000 may be dismissed at the tribunal’s discretion.
6. Departmental Appeal Thresholds
- GSTAT: ₹20 lakh
- High Court: ₹1 crore
- Supreme Court: ₹2 crore
(Subject to certain exceptions)
7. New Forms Introduced
- Key forms include:
- FORM GSTAT-05 (Appeal)
- FORM GSTAT-01 (IA) (Interim Applications)
- FORM GSTAT-04 (Appearance)
- FORM GSTAT-06 (Summons)
8. Filing Mode
- Appeals must be submitted electronically via the GST portal.
- Manual filing may be allowed temporarily in select cases.
9. Essential Documents Required
- Copy of the original order
- Appeal form
- Proof of fee and pre-deposit
- Grounds of appeal, facts, and relief sought
10. Adjournments & Rectifications
- Each party may get up to 3 adjournments.
- Rectifications of errors on record can be filed within 3 months.
Conclusion:
With the GST Appellate Tribunal now operational, it’s essential for businesses and taxpayers to understand the updated procedures, timelines, and compliance requirements to avoid delays and penalties. Staying informed will help you navigate disputes efficiently and make the most of the structured appellate process. For further information, contact us.