Library / Goods and Services Tax: The Professional's Master Guide

39. Appeals and Revision (Sections 107 to 121)

Appeals under GST run in four tiers: the Appellate Authority (first appeal), the GST Appellate Tribunal (GSTAT), the High Court and the Supreme Court. Each tier has a time limit and, at the first two, a pre-deposit. Most appeals are won or lost on facts at the first two tiers, so the record built there matters most.

39.1 First Appeal (Section 107)

Who hears: Joint or Additional Commissioner (Appeals) for orders of lower officers; Commissioner (Appeals) for higher officers.
Time: within three months of communication of the order; the authority may allow one more month for sufficient cause (section 107(4)). The department may appeal within six months (section 107(2)).
Form: APL-01 online, with the order, grounds and statement of facts; a certified copy within seven days where the order was not uploaded.
Pre-deposit: full admitted amount plus 10% of the remaining tax in dispute, up to Rs. 20 crore each under CGST and SGST. For appeals against penalty-only orders (no tax demand), 10% of the penalty, from 1 October 2025.
Stay: once the pre-deposit is made, recovery of the balance is deemed stayed (section 107(7)).
Decision: within one year where possible (section 107(13)); adjournments limited to three.
No remand: the Appellate Authority can confirm, modify or annul but cannot refer the case back to the adjudicating authority (section 107(11)).

Illustration 190: Pre-deposit at each stage

An order on Sharma Textiles Pvt. Ltd. confirms tax of Rs. 3,60,00,000 (CGST Rs. 1,80,00,000 and SGST Rs. 1,80,00,000), interest and penalty. The company admits tax of Rs. 20,00,000 and interest on it of Rs. 7,50,000, and disputes the rest.

Step 1 (first appeal): Admitted amount Rs. 27,50,000. Remaining tax in dispute Rs. 3,40,00,000; 10% = Rs. 34,00,000 (Rs. 17,00,000 CGST and Rs. 17,00,000 SGST). Total deposit Rs. 61,50,000.

Step 2: The Appellate Authority drops tax of Rs. 1,20,00,000 and confirms Rs. 2,20,00,000.

Step 3 (GSTAT): Pre-deposit 10% of the tax in dispute before the Tribunal: 10% of Rs. 2,20,00,000 = Rs. 22,00,000 (Rs. 11,00,000 each), in addition to the Rs. 34,00,000 already deposited.

Step 4 (cap): Had the disputed tax been Rs. 480 crore under each of CGST and SGST, 10% would be Rs. 48 crore each, but the cap limits the first-appeal deposit to Rs. 20 crore each, Rs. 40 crore in all.

Illustration 191: Penalty-only appeal

A penalty of Rs. 50,00,000 (Rs. 25,00,000 each) under section 122 without any tax demand was imposed by an order of 15 November 2025. Pre-deposit for first appeal: 10% = Rs. 5,00,000. For orders before 1 October 2025, tribunals and courts have held the requirement prospective.

39.2 Revision (Section 108)

The Principal Commissioner or Commissioner may call for records and revise an order of a subordinate officer that is erroneous and prejudicial to revenue, or illegal, after hearing the person. Revision cannot be made where the order is under appeal, where the six-month period for departmental appeal has not expired, where more than three years have passed since the order, or where the matter was already revised. Appeal against revision lies to the GSTAT.

39.3 The GST Appellate Tribunal (Sections 109 to 114)

The GSTAT has a Principal Bench in New Delhi and State benches (31 notified). Benches have judicial and technical members. The Principal Bench hears appeals where place of supply is an issue; ISD, OIDAR and actionable claim matters are also routed to it. E-filing began on 24 September 2025 and hearings have begun in 2026.

Time: three months from communication of the order (section 112(1)); delay up to three months may be condoned; the department has six months; cross-objections within 45 days.
Transitional limitation: a notification of 30 June 2026 fixed 31 July 2026 as the last date for appeals against orders communicated before 1 May 2026. For later orders the normal three months apply.
Pre-deposit: 10% of the remaining tax in dispute, up to Rs. 20 crore each under CGST and SGST, in addition to the first-appeal deposit; 10% of penalty in penalty-only appeals.
Small cases: the Tribunal may refuse to admit appeals where the amount involved is Rs. 50,000 or less.
Departmental appeals: under Circular 207/1/2024-GST the department does not file appeals below Rs. 20 lakh before the GSTAT, Rs. 1 crore before High Courts and Rs. 2 crore before the Supreme Court, subject to listed exceptions. Early GSTAT orders have dismissed departmental appeals below the limit.

Illustration 192: GSTAT limitation

Order A: first appellate order communicated on 18 March 2026. Under the notification of 30 June 2026, the appeal lies by 31 July 2026.

Order B: first appellate order communicated on 12 May 2026. Three months end on 12 August 2026. With condonation of up to three months, the outer limit is 12 November 2026, with an application explaining the delay.

Order C: order-in-original communicated on 5 January 2026, for first appeal. Three months end on 5 April 2026; the Appellate Authority can condone delay only up to 5 May 2026.

39.4 High Court, Supreme Court and Non-appealable Orders

An appeal lies to the High Court from a State bench order within 180 days, only on a substantial question of law (section 117). An appeal lies to the Supreme Court from Principal Bench orders on place of supply and from High Court judgments certified fit (section 118). Section 121 bars appeals against orders transferring proceedings between officers, orders on seizure or retention of documents, sanction of prosecution and orders on instalments under section 80.

Writ petitions under Article 226 are not a substitute for appeal. They are entertained where there is a breach of natural justice, the order is without jurisdiction, a fundamental right is affected or the validity of a provision is challenged.

Judicial view: Writ, limitation and condonation

Assistant Commissioner of State Tax v. Commercial Steel Ltd. (Supreme Court, 2021): A writ petition cannot bypass the statutory appeal except where there is a breach of fundamental rights, a violation of natural justice, an order wholly without jurisdiction, or a challenge to the vires of a law.

Singh Enterprises v. Commissioner of Central Excise (Supreme Court, 2008): Where the statute gives a fixed period for appeal with a limited condonation period, the appellate authority has no power to condone delay beyond it. The same reading applies to section 107(4).

Assistant Commissioner (CT) LTU v. Glaxo Smith Kline Consumer Health Care Ltd. (Supreme Court, 2020): A High Court should not use its writ power to entertain a challenge after the statutory appeal period, including the condonable period, has expired.

Collector, Land Acquisition, Anantnag v. Mst. Katiji (Supreme Court, 1987): Where the law allows condonation for sufficient cause, courts should take a liberal and justice-oriented approach. This helps before the GSTAT and High Court, where condonation is available.

39.5 Drafting Grounds of Appeal

Part	Content
Statement of facts	Chronology: business, period, notice, reply, hearing, order; neutral tone
Grounds	Numbered, each a distinct legal or factual point, general to specific
Legal submissions	Sections, rules, circulars and judgments with the relevant paragraph
Evidence	List of documents, with those not produced before the adjudicating authority flagged and reasons (rule 112)
Prayer	Set aside the order, drop interest and penalty, refund pre-deposit, any other relief

A sample set of grounds for an appeal against denial of ITC under section 16(2)(c) follows.

The order exceeds the show cause notice in amount and grounds, contrary to section 75(7).
The appellant received the goods, paid the supplier with tax through banking channels, and holds tax invoices, e-way bills and transport records.
The invoices appeared in GSTR-2B at the time of availment, satisfying section 16(2)(aa).
The department has not attempted recovery from the supplier or shown that the supplier did not pay; under Bhandari Scrap Traders (Supreme Court, 2026) credit is restored when the supplier pays, and the order does not examine this.
The extended period is not available as all facts were disclosed in returns; penalty cannot be imposed absent intent.
The order was passed without a personal hearing, contrary to section 75(4).

Chapter summary

• First appeal within three months plus one month, in APL-01, with pre-deposit of admitted amounts and 10% of disputed tax (cap Rs. 20 crore each); penalty-only appeals need 10% from 1 October 2025.

• The Appellate Authority cannot remand; revision under section 108 is limited to three years and to orders not under appeal.

• GSTAT appeals lie within three months (condonable by three), with a further 10% pre-deposit; orders communicated before 1 May 2026 had a 31 July 2026 deadline.

• High Court appeals need a substantial question of law and lie within 180 days; the Supreme Court hears place of supply appeals from the Principal Bench.

• Writs are for natural justice, jurisdiction and vires (Commercial Steel); statutory limits on condonation are strict (Singh Enterprises).

• Monetary limits under Circular 207/1/2024-GST filter out small departmental appeals.