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February 28, 2025

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Legal Procedure for Filing an Appeal under the GST Act

A demand order under GST is a written notice sent by the official channel to the taxpayer if the GST officer believes that the taxpayer owes some taxes under the GST Act. It is a proper notice issued by the GST captain to the taxpayer in case he/she has a pending tax liability. Whether the taxpayer is recorded under GST or not, he/she can file an appeal against such an order within 3 months after the date of receiving the notice. In this article, we will cover the procedure to file an appeal against a call order and the steps for filing a reply to the demand order.

What is a Demand Order under GST?

A demand order under GST (Goods in Addition Services Tax) is issued by tax authorities when there is a shortfall in tax payment, incorrect utilization of input tax credit, or any extra non-compliance with GST laws. The Demand, besides recovery provisions, is initiated to ensure that the correct amount of tax is paid.

Eligibility to appeal against Demand Order under GST

Taxpayers recorded for GST, or unregistered individuals, who disagree with an order or decision from an adjudicating authority can appeal to the Appellate Authority within three months of the order's issuing or communication. An appeal is only conceivable after the adjudicating authority has issued a formal order. Appeals against demand orders are subject to the following additional conditions:

1. A pre-deposit of at least 10% of the disputed tax is required by law before filing an appeal. However, authorities can modify this percentage to a lower amount.

2. Appeals against demand guidelines can be filed using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Companies and LLPs are required to use a DSC for such appeals.

How do you file the first appeal against the Demand Order?

Conditions required to initiate an appeal:

1. The taxpayer is eligible to file a petition to the Appellate Authority only if an order has been issued by the umpiring authority.

2. Ensure that a PDF reader is installed on your processor to access the PDF file containing the order.

Step-by-step Procedure:

Step 1: Access the GST portal besides logging in.

Step 2: Navigate to Services > User Services > My Applications.

On the 'My Applications' page, choose the application type as 'Appeal to Appellate Authority' and click on 'New Application.'

The 'GST APL-01-Appeal to Appellate Authority' page will appear.

Step 3: Specify the order type by means of 'Demand Order' and input the order number. Click on search.

The orders page will be presented.

Step 4: From the drop-down list, select one or more categories of the case under dispute and click on add.

A list of cases will be displayed.

The taxpayer can edit the date of communication and the old-fashioned dispute.

Step 5: Upload annexure to GST APL-01- Click on the 'click here' link on the order page.

Download the GST APL-01 template, update the facts in the annexure, save the file as 'AplAnnexureTemplate.pdf,' and upload it.

Step 6: Update the disputed amount/payment details by clicking on the 'Disputed amount/Payment details' button on the command page.

Enter the amount under dispute by ordering it according to the tax head, late fee, or interest. The amount of Demand created and admitted is automatically displayed.

Note: Demand admitted = Demand created – Amount disputed.

Enter the percentage value of the pre-deposit, set at a minimum of 10% of the amount disputed.

A lower percentage requires support from the authority, and the 'Details of Payment required' table is auto-filled.

Enter the place of supply facts for the amount of Demand admitted.

Choose the payment method: cash or ITC in the electronic ledger.

Step 7: Add supporting documents if necessary, deliver a document description, and choose the file for upload.

Step 8: Preview the application by ticking on the 'Preview' button. Download the PDF file to verify the details.

Step 9: Proceed to file – Select the statement checkbox, choose the authorized signatory, and enter the place to proceed with filing.

Click submit and advance to file with DSC or EVC. Upon successful submission, an authorization message will be displayed.

How do you reply during an appeal proceeding?

The Appellate Specialist has the option to initiate proceedings and conduct hearings for the resolution of an appeal or may bid the appellant during the review of the tax department's appeal application. To re-join during an appeal proceeding, taxpayers should adhere to the following steps:

Step 1: Log in to the GST portal. In addition, navigate to Services > User Services > View Additional Notices/Orders.

Step 2: On the case details page, through the specific Case ID, select the notice tab, and then click on the reply option. This action opens a page titled 'Submit an account to the notice.'

Step 3: Upload the reply file, attach backup documents, verify the checkbox, and then click on the 'File Reply' button.

A warning message will appear. Click ensue and then submit with DSC or EVC. An acknowledgment will be displayed upon the positive upload of the reply.

How do you file a rectification request of an appeal?

Procedure for Submitting a Rectification Request for an Appeal:

Step 1: Log in to the GST portal.

Step 2: Navigate to Services > User Services > View Additional Notices/Orders. Click on 'View' on the 'Additional Notices/Orders' page.

Upon clicking, the Case Details page will be displayed.

Step 3: Access the 'Orders' tab and select 'Initiate rectification.'

Step 4: The 'Initiate rectification' page will appear. Choose the reason for the applicable rectification and upload any necessary backup documents. Then, click on 'Initiate' and proceed to submit with either DSC or EVC.

Conclusion

Upon successful submission, a message will be sent indicating the rectification request number. The appeal process against a GST call order involves following a systematic approach. Taxpayers, whether registered under GST or not, can file an appeal within three months of receiving the notice. The step-by-step procedure outlined here, from accessing the GST portal to submitting germane documents, guides users through filing an appeal and reacting during proceedings, besides initiating rectification requests. But, the complexities involved with GST compliance can be intimidating. Therefore, it is advisable to get help from tax experts who can help safeguard a smooth GST compliance process.

Suggested Read: Appointment & Powers of Officers under GST

FAQs

1. What is the procedure for filing an appeal to the Appellate Tribunal?

An appeal to the ITAT would be in Form No. 36, filed in triplicate. The appeal submission should be made using a paper book consisting of two copies of the order interested against it with one certified copy.

2. What is a power of attorney for a GST appeal?

A Power of Attorney is a legal file that allows an individual (grantor) to delegate specific responsibilities to an extra person (attorney-in-fact). In GST matters, this ensures that tax particles, disputes, and communications with GST powers are handled without delay.

3. What is section 107 of the GST Act?

The State Goods and Services Tax Act or the Union Territory Goods besides Services Tax Act by an adjudicating consultant may appeal to such Appellate Authority as may be agreed upon within three months from the date on which the said result or order is communicated to such person.

4. What is the fee for a GST appeal?

The fee for filing a GST appeal varies, depending on the nature of the appeal and the amount in dispute. For cases concerning tax, interest, or penalties, the fee is generally 10% of the disputed amount, subject to a minimum besides maximum limit. For other cases, a nominal fee may be applicable.

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