Procedure of GST Appeals to Appellate Tribunal | Goods and Services Tax (GST) - B Com PDF Download

Latest Updates

Rajya Sabha Bill Approval for GST Appellate Tribunals

The Rajya Sabha has passed a bill for the establishment of GST appellate tribunals, setting a minimum age of 50 and modifying appointment terms.

50th GST Council Meeting

• The GST Council deliberated on the locations for setting up state benches of the appellate tribunal and the associated timelines. The GST appellate tribunal is scheduled to be operational from 1st August 2023. Rules facilitating the appointment of the President and Members will be enacted. The establishment of State Benches will be phased in as recommended at the 50th GST Council meeting.
• Manual filing of appeals against orders related to TRAN-1/TRAN-2 by migrated taxpayers has been permitted by the GST Council.
• Authorities are set to introduce manual appeal filing within the GST framework.

49th GST Council Meeting

• Amnesty Scheme 1

  An amnesty scheme tailored for pending returns in GSTR-4, GSTR-9, and GSTR-10. It offers a conditional waiver or reduction of late fees.

• Amnesty Scheme 2

  This scheme aids taxpayers whose GST registration was canceled due to non-filing of tax returns. It allows for the revocation of GST registration that was previously unattainable.

• Amnesty Scheme 3

  Provides a conditional deemed withdrawal of best judgment assessment orders in historical cases. It is accessible to taxpayers who missed the 30-day deadline for filing the return after assessment but subsequently filed it with interest and late fees by a specified date. This benefit is granted regardless of whether an appeal was filed or its status.

Please note that official notifications regarding these matters are pending issuance by the CBIC.

Appeals to Appellate Tribunal

• The government establishes an Appellate Tribunal referred to as the Goods and Services Tax Appellate Tribunal.
• This tribunal is designated to listen to appeals challenging the decisions made by the Appellate Authority or the Revisional Authority.

Who can appeal to GST Appellate Tribunal?

• A person who is dissatisfied with the decision made by the First Appellate Authority or the Revisional Authority has the right to appeal against the decision to the National Appellate Tribunal (Appellate Tribunal).
• The appeal must be lodged within a period of 3 months from the date of the decision, accompanied by Form GST APL-05 and the requisite fees.

Fees

• Every appellant is required to make the following payments:
• The full sum corresponding to the original order that the appellant agrees with, which encompasses tax, interest, fines, fees, and penalties.
• Additionally, 20% of the disputed tax amount must be paid.

Will all appeals be accepted?

• The Appellate Tribunal reserves the right to decline any appeal if the sum involved (be it tax, input tax credit, fine, fee, or penalty) is below Rs. 50,000.
• If the committee deems that the initial order was unlawful or improperly issued, it can instruct an officer to submit an appeal to the Appellate Tribunal within 6 months from the appeal date, with a possible extension of 3 months.

What happens to the party in whose favour the decision was made?

• Upon the decision being in favor of a party, they will be notified that an appeal has been forwarded to the Appellate Party.
• Subsequently, the benefitted party has the option to submit a memorandum of cross-objections within 45 days upon receiving the notice, with a potential extension of another 45 days upon showing sufficient cause.

Decisions taken by the Appellate Tribunal

1. The Appellate Tribunal has the authority to confirm, alter, or invalidate a decision, or send the case back to the First Appellate Authority or the revisional authority.
2. If necessary, the Tribunal can remand the case to the original adjudicating authority, providing instructions for a new decision based on any additional evidence presented.
3. Within one year from the date of filing the appeal, the Appellate Tribunal is required to provide a decision.
4. A copy of the order must be furnished to:
   • The First Appellate Authority or the revisional authority, which is the original adjudicating authority.
   • The appellant.
   • The jurisdictional Commissioner of CGST.
   • The jurisdictional Commissioner of SGST.

Will adjournment be allowed?

• The Appellate Tribunal has the authority to postpone the hearing of the appeal on a maximum of three occasions. The rationale behind any adjournment must be documented in writing.

Can the Appellate Tribunal amend its own order?

• The Appellate Tribunal has the authority to modify its order within three months from the date of the original order to correct any apparent errors.
• Corrections can be initiated by the Appellate Tribunal itself or can be pointed out by the Commissioner of GST or the other party involved in the appeal.
• Any changes that result in an increase in tax liability or a decrease in refund or input tax credit will only be made after providing a fair opportunity for all parties to present their case.
• If the order is under a stay issued by a Court or Tribunal, the time during which the order is stayed will not be counted within the one-year period.

Decisions by the Appellate Tribunal

The Appellate Tribunal operates through Benches for decision-making.
The composition of State Bench & Area Bench includes:

• 1 Judicial Member (Judicial)
• 1 CGST Member (Technical)
• 1 SGST Member (Technical)
• State President

A single member can resolve cases involving amounts below 5 lakhs.

Difference in Opinion Resolution

• Decisions are made based on majority agreement within the Bench.
• If there's a tie, the National President or State President intervenes, referring the case to other Benches.
• The final decision is then reached by considering the majorities of both original and referred benches.

Powers of the Appellate Tribunal

• The Appellate Tribunal possesses powers equivalent to a court under the Code of Civil Procedure, 1908.
• It functions as a deemed Civil Court.

Is interest payable on refund of fees?

• If a refund of fees is required due to an order from the First Appellate Authority or the Appellate Tribunal, interest will be payable if the refund is not made within 60 days from the date of initial payment.
• The interest rate applicable will not exceed 18%.
• If the appellant is dissatisfied with the decision of the National Appellate Tribunal, they have the option to appeal to the High Court and subsequently to the Supreme Court.