Any taxpayer aggrieved by an order passed by the First Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017, or by a Revisional Authority under Section 108 of the Central Goods and Services Tax Act, 2017, should examine whether a GSTAT appeal is needed. This will include cases involving tax demands, denial of input tax credit, refund rejection, classification disputes, valuation disputes, penalty orders, interest demands, and adverse legal findings. Even where the tax amount is not very large, an appeal may be important if the issue is recurring or if the finding may affect later years. However, taxpayers should remember that GSTAT has the discretion to refuse admission where the tax, input tax credit, fine, fee or penalty involved does not exceed Rs 50,000.
APPEAL FORMS
The appeal by a taxpayer is to be filed in Form GST APL-05 electronically, with relevant documents. Cross-objections, where required, are to be filed in Form GST APL-06.
PRE-DEPOSIT REQUIREMENTS
The most important cash-flow point is the pre-deposit. The taxpayer has to pay the admitted amount in full. In addition, the taxpayer has to pay 10% of the remaining disputed tax, over and above the pre-deposit already made at the first appeal stage. The current cap is Rs 20 crore. If the order is only for a penalty and does not involve tax, the law also provides for a pre-deposit of 10% of such penalty, in addition to the earlier pre-deposit requirement. Once the required amount is paid, recovery of the balance amount is deemed to be stayed till the disposal of the appeal.
FILING FEES
There is also a filing fee. The fee is Rs 1,000 for every Rs 1 lakh of tax, input tax credit, difference in tax or input tax credit, fine, fee or penalty involved, subject to a minimum of Rs 5,000 and a maximum of Rs 25,000. If the order does not involve any demand for tax, interest, fine, fee or penalty, the fee is Rs 5,000.
WHY GSTAT MATTERS
The real advantage of GSTAT is not only that another appeal forum is available. Its greater value lies in the expected quality of decision-making. Except for certain smaller matters, appeals are to be heard by one Judicial Member and one Technical Member. This combination is useful. A Judicial Member brings training in law, evidence, natural justice, limitation, interpretation of statutes and judicial discipline. A Technical Member brings practical experience of tax administration and GST operations. Together, they can provide a more balanced view.
For taxpayers, this should mean a better appreciation of facts, a more consistent interpretation of GST law, and a more independent forum than departmental appeals. GSTAT can also reduce unnecessary writ petitions before High Courts because factual disputes and mixed questions of fact and law can now be tested before a specialised tribunal. In short, GSTAT gives taxpayers a structured opportunity to correct wrong orders before the matter becomes final.
ACT BEFORE THE DEADLINE
The practical message is simple: do not wait until the last week of June. Identify all adverse appellate or revisional orders, compute pre-deposits and fees, prepare grounds carefully, collect documents, and file well before 30 June 2026.
(The writer, a Fellow Chartered Accountant (FCA), specialising in Goods, Services tax, Transfer Pricing and Income tax, is the co-author of the book ‘Comedium of Industrial Policy for MSMEs in Goa’ released by ICAI)
