Guide To Process Of Appeal And Disputes Under GST


Date: 22 Sep 2022

What is the Process Of Appeals Under GST?


What is an appeal?

Any legal appeal attempts to have a lower court's judgement overturned in a higher court. When there are any legal difficulties, appeals are made.


Disputes under GST

Any law, including tax laws, imposes obligations. These requirements often fall into one of two categories: tax-related or procedure-related. The tax officer confirms that the taxpayer has complied with these requirements (through an audit, anti-evasion, examination etc.). Situations of genuine or perceived non-compliance do occur occasionally. A disagreement develops and must be settled if there is a persistent difference of opinion. A departmental official resolves this dispute initially by a quasi-judicial process resulting in the issuance of an initial order known by several titles, including assessment, adjudication, order-in-original, etc.

The GST Act excludes the Board, the First Appellate Authority, and the Appellate Tribunal from the definition of "adjudicating authority," which is the authority to issue any order or decision under this Act. Any decision or order made pursuant to the Act is, thus, in a sense, an "adjudication." Examples include the imposition of a fine, the cancellation of registration, using best judgement in evaluating a claim for a refund, and more.


What are the steps of appeal under GST?


Appeal level Orders passed by Appeal to Sections of Act
1st Adjudicating Authority First Appellate Authority 107
2nd First Appellate Authority Appellate Tribunal 109,110
3rd Appellate Tribunal High Court 111-116
4th High Court Supreme Court 117-118





Norms for general GST appeals

All appeals must be filed using the appropriate forms and fees. The Fee will be equal to the amount of tax, interest, fines, penalties, and other costs related to the contested order, as the appellant acknowledges, plus 10% of the amount in dispute. Fees are not charged in circumstances when an officer or the Commissioner of GST appeals.


Can a legal counsel appear in court?

Unless compelled by the Act, any individual required to attend before a GST Officer, First Appellate Authority, or Appellate Tribunal may designate an authorised representative to appear on their behalf. A legitimate representative may be:

  1. A relative

  2. A regular employee

  3. A lawyer working in any Indian court

  4. Anyone with a current certificate of practice is a chartered accountant, cost accountant, or company secretary.

  5. A retired officer with a minimum Group-B gazetted officer rank from any State Government or the Excise Department's Tax Department.

  6. Whoever prepares tax returns.

Within a year of their retirement, retired officers are not permitted to present in place of the individual in question.


Circumstances under which an appeal cannot be filed

To control the appeals process and save unnecessary legal costs, the Board or the State Government may set monetary limits for appeals by the GST officer at the Council's advice. The following decisions made by a GST officer cannot be appealed:

  1. A directive to switch the officer handling the case's proceedings;

  2. An order to seize or keep records, such as books of accounts;

  3. An order authorising enforcement of the Act; or

  4. An order authorising the instalment payment of taxes and other amounts.

Anyone who disagrees with a decision or order made against him under the GST may appeal it to the First Appellate Authority. If they disagree with the First Appellate Authority's ruling, they may file an appeal with the National Appellate Tribunal, the High Court, and then the Supreme Court.