What is the Process Of Appeals Under GST?

Under the GST regime, taxpayers have the right to appeal against any decision made by the GST authorities. The process of appeals under GST allows taxpayers to challenge the decisions made by the GST authorities, including assessments, orders, and demands. The GST laws and regulations govern the appeals process and involve filing an appeal with the appropriate appellate authority. The appeals process can be a lengthy and complex procedure, involving the submission of various documents and evidence to support the appeal. It is essential for taxpayers to understand the process of appeals under GST to ensure that they can exercise their rights and challenge any incorrect decisions made by the GST authorities.

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What is an Appeal?

Any legal appeal is an attempt to have a lower court’s judgement overturned in a higher court. When there are any legal difficulties, appeals are made.

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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 evaluate a refund claimed, and more.

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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 the Tax Department of any State Government or the Excise Department
  6. Whoever prepares tax returns

Retired officers are not permitted to present in place of the individual in question within a year of their retirement.

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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.

Time Limit for Filing a GST Appeal

The time limit for filing a GST appeal depends on the level of authority you are appealing to:

  1. First Appeal (Appellate Authority):
    An appeal against the decision or order of an adjudicating authority must be filed within three months from the date of communication of the decision.
  2. Second Appeal (Appellate Tribunal):
    If the Appellate Authority’s order is not satisfactory, an appeal to the Appellate Tribunal must be filed within three months of receiving the order.
  3. High Court or Supreme Court:
    Appeals to higher courts have their prescribed time limits based on procedural rules.
    Extensions may be granted for valid reasons, but they are limited. For first appeals, an additional one month is allowed. Depending on circumstances, an extended period of up to three months can be granted for second appeals.
    Adhere to these timelines to avoid rejection. Proper documentation and seeking professional advice can help ensure a smooth process.

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Can an Authorised Representative Appear in Court?

Yes, an authorized representative can appear on behalf of a taxpayer in GST-related cases, including appeals. Authorized representatives include:

  1. Advocates:
    Qualified legal practitioners registered with a Bar Council.
  2. Chartered Accountants/Cost Accountants:
    Professionals authorized to represent taxpayers in financial and tax matters.
  3. Company Secretaries:
    Certified professionals are eligible to act as authorized representatives.
  4. Tax Return Preparers (TRPs):
    Approved TRPs can represent taxpayers in specific cases.
  5. Any Person Authorized by the Taxpayer:
    Taxpayers can also appoint any individual to represent them by providing written authorization, subject to conditions outlined in GST laws.

Authorized representatives are crucial in presenting the case, submitting documents, and answering queries during the hearing. However, they must adhere to the rules and ethics governing their practice. Legal representation by an advocate may become necessary if the matter escalates to higher authorities like the High Court or Supreme Court.

Withdrawal of a GST Appeal Procedure

A taxpayer can withdraw a GST appeal at any stage before the appellate authority or tribunal decides it.

  1. Procedure for Withdrawal:
    • Submit a written application to the appellate authority or tribunal expressing the intent to withdraw the appeal.
    • Ensure compliance with procedural rules and provide valid reasons for withdrawal.
  3. When Can Appeals Be Withdrawn?
    • If the taxpayer and the department resolve the issue mutually.
    • If the taxpayer decides not to pursue the matter further.
    • In case of procedural errors or the need to file a fresh appeal.
  5. Effects of Withdrawal:
    • Withdrawal may end the dispute but does not guarantee relief. The original order against which the appeal was filed remains binding.
    • Any pre-deposited GST appeal fees will generally not be refunded.

It is advisable to carefully consider the implications before withdrawing an appeal. Seek professional advice to understand the consequences and alternative options available for dispute resolution.

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Conclusion

The process of appeals under GST is an important mechanism for taxpayers to challenge any incorrect decisions made by the GST authorities in India. The appeals process is governed by GST laws and regulations and involves filing an appeal with the appropriate authority. Taxpayers must understand the appeals process and provide relevant evidence and documents to support their appeal. The appeals process can be complex and lengthy, and it is advisable to seek professional assistance when filing an appeal. By understanding and utilizing the process of appeals under GST, taxpayers can ensure that their rights are protected and contribute to the overall efficiency and transparency of the GST system in India.

Rithesh Bajoriya
Rithesh Bajoriya
Chartered Accountant
MRN No.: 407339
City: Varanasi

As a Chartered Accountant with over 18 years of experience, I have honed my skills in the field and developed a genuine passion for writing. I specialize in crafting insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, my aim is to share valuable insights that resonate with readers.

Frequently Asked Questions

  • What are the steps involved in filing a GST appeal procedure?
    Prepare a detailed appeal with supporting documents, pay the required fees, and file it with the appropriate authority within the time limit.
  • What is the time limit for filing a GST appeal?
    Three months for both the first and second appeals, with limited extensions allowed.
  • What fees are required to file a GST appeal?
    The fee includes a prescribed amount and 10% of the disputed tax amount as a pre-deposit.
  • What types of decisions can be appealed under GST?
    Decisions on tax assessments, penalties, registration cancellations, and refunds can be appealed.
  • What happens after an appeal is filed?
    The authority reviews the appeal, conducts a hearing, and issues an order based on facts and evidence.
  • What is the role of the Appellate Tribunal in GST appeals?
    The Appellate Tribunal is the second level of appeal in the GST dispute resolution process. Taxpayers can appeal to the Tribunal if they are unsatisfied with the decision of the Appellate Authority. The Tribunal looks at the case and makes a final decision. You can appeal the decision in higher courts if needed.
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