Appeal and Revision Mechanisms under the Central Goods and Services Tax Act, 2017 (Sections 107-121)

I. Introduction

The Central Goods and Services Tax (CGST) Act, 2017, establishes a comprehensive framework for the levy and collection of tax on intra-State supplies of goods or services or both. Integral to this framework is a structured mechanism for dispute resolution, primarily through a multi-tiered appellate process. This process provides recourse for taxpayers and the Revenue alike against decisions or orders passed by adjudicating authorities, ensuring principles of fairness and natural justice are upheld. Alongside the primary appeal route, the Act also provides for a revision mechanism under Section 108, empowering designated authorities to review certain orders passed by their subordinates, primarily to safeguard the interests of revenue.

Understanding the nuances of these appeal and revision pathways is crucial for effective tax administration and compliance. Taxpayers aggrieved by an order need to know the appropriate forum, procedural requirements, timelines, and conditions precedent (such as pre-deposit) to exercise their right to appeal. Similarly, the Revenue must operate within the statutory confines when initiating departmental appeals or invoking revisionary powers. This report provides an in-depth analysis of the key provisions governing appeals and revision under Chapter XVIII of the CGST Act, 2017, specifically focusing on Section 107 (Appeal to Appellate Authority), Section 108 (Revision by Revisional Authority), Section 112 (Appeal to Appellate Tribunal), Section 117 (Appeal to High Court), and Section 118 (Appeal to Supreme Court). It examines the procedures, conditions, time limits, documentation, applicable forms and fees, pre-deposit requirements, powers of the respective authorities, relevant judicial interpretations, the hierarchy of appeals, and compares the appeal mechanism under Section 107 with the revision mechanism under Section 108. The analysis incorporates recent legislative amendments, including those introduced by the Finance (No. 2) Act, 2024, proposals from the Union Budget 2025, and the evolving status of the Goods and Services Tax Appellate Tribunal (GSTAT).

II. First Appeal: The Appellate Authority (Section 107)

Section 107 of the CGST Act provides the first level of appeal against orders passed by an adjudicating authority. It outlines the process, conditions, and limitations for seeking redressal at this stage.

A. Initiating the Appeal

Who can Appeal: The right to appeal under Section 107(1) is available to “any person aggrieved” by a decision or order passed by an “adjudicating authority” under the CGST Act, the State Goods and Services Tax (SGST) Act, or the Union Territory Goods and Services Tax (UTGST) Act.¹ The term “aggrieved person” implies that the individual’s rights must be prejudicially or adversely affected by the order; mere disagreement may not suffice.⁵ Case law interprets an aggrieved person as one whose right is affected by the decision sought to be impugned.⁵ The department can also initiate an appeal. Under Section 107(2), the Commissioner, either suo motu or upon request from the State/UT Tax Commissioner, can examine the legality or propriety of any order passed by an adjudicating authority and direct a subordinate officer to file an application (treated as an appeal) to the Appellate Authority.¹
Adjudicating Authority: This term refers to any authority competent to pass any order or decision under the Act, but specifically excludes the Central Board of Indirect Taxes and Customs (CBIC), the Revisional Authority, the Authority for Advance Rulings (AAR), the Appellate Authority for Advance Rulings (AAAR), the Appellate Authority itself, and the Appellate Tribunal.¹⁰ Therefore, orders passed by officers like the Assistant Commissioner, Deputy Commissioner, Joint Commissioner, or Additional Commissioner acting as adjudicating authorities are typically appealable under Section 107.
Orders Appealable: Generally, any “decision or order” passed by an adjudicating authority can be appealed.¹ However, Section 121 carves out certain orders that are non-appealable, including orders transferring proceedings, orders pertaining to the seizure or retention of books of account, orders sanctioning prosecution, and orders allowing payment of tax in installments under Section 80.⁴
Appellate Authority: The appeal lies to the specific Appellate Authority prescribed based on the rank of the adjudicating authority who passed the original order. Rule 109A of the CGST Rules, 2017, designates the Commissioner (Appeals) for orders passed by Additional or Joint Commissioners, and the Additional Commissioner (Appeals) for orders passed by Deputy Commissioners, Assistant Commissioners, or Superintendents.⁸ While the CGST Act provides for cross-empowerment where an officer of one administration (CGST/SGST) can pass orders under both Acts for a transaction, the appeal mechanism maintains separation: an order passed by a CGST officer must be appealed before a CGST Appellate Authority, and an order by an SGST officer before an SGST Appellate Authority.¹²
Time Limits: Strict time limits apply for filing appeals:

Taxpayer/Aggrieved Person: Within three months from the date on which the decision or order is communicated to them.¹ It is critical to note that the time limit runs from the date of communication, not the date of issue or dispatch of the order.¹⁰
Department: Within six months from the date of communication of the decision or order.¹
Condonation of Delay: Section 107(4) empowers the Appellate Authority to condone a delay in filing the appeal for a further period of one month beyond the initial three or six months, provided the authority is satisfied that the appellant was prevented by “sufficient cause” from presenting the appeal within the prescribed period.¹

“Sufficient Cause”: This term is not defined in the Act but has been interpreted by courts based on the facts and circumstances of each case. Reasons such as death in the family, prolonged illness, loss of documents, non-receipt of the order, improper guidance, change of consultant, or shifting of office may constitute sufficient cause.¹⁰ The decision rests on the discretion of the Appellate Authority.
Strict Limit: Judicial precedent strongly indicates that the one-month condonation period is the maximum permissible. Appellate Authorities lack inherent power to condone delays beyond this statutory limit.¹⁸ High Courts generally refrain from using their writ jurisdiction under Article 226 of the Constitution to direct condonation beyond the statutory 3+1 or 6+1 month period, viewing the CGST Act as a self-contained code where the specific limitation provision implicitly excludes the general provisions of Section 5 of the Limitation Act, 1963.¹⁸
Calculation of “Month”: Case law suggests that the term “month” in Section 107 should be interpreted as a calendar month, not necessarily a fixed number of days (e.g., 30 days). This distinction can be crucial when calculating the deadline, especially near the end of the condonation period.¹⁹

B. Procedural Requirements

Forms: Appeals must be filed in the prescribed forms:

By Taxpayer/Aggrieved Person: FORM GST APL-01.²⁰
By Department (Application): FORM GST APL-03.⁷ These forms are typically filed electronically through the GST portal, unless otherwise notified by the Commissioner.²⁰

Documentation and Verification: The appeal must be verified in the prescribed manner and accompanied by the grounds of appeal and relevant supporting documents.¹ Signatures must comply with Rule 26 of the CGST Rules.⁹ Supporting documents can include the impugned order copy, relevant invoices, challans, financial statements, affidavits, technical literature, or any other evidence pertinent to the grounds of appeal.⁵
Filing Process and Acknowledgement:

Upon electronic submission of FORM GST APL-01 or APL-03, a provisional acknowledgement is issued immediately.⁷
A certified copy (or self-certified copy if the order is not uploaded on the portal ⁷) of the decision or order appealed against must be submitted within seven days of filing the electronic form.⁶
A final acknowledgement, indicating the appeal number, is then issued in FORM GST APL-02.⁷
The official “date of filing” the appeal depends on the timing of the submission of the order copy. If submitted within seven days of the electronic filing, the date of the provisional acknowledgement is the filing date. If submitted after seven days, the date of submission of the order copy becomes the filing date.⁶ Crucially, the appeal is treated as formally filed only upon the issuance of the final acknowledgement (FORM GST APL-02).²³

C. Mandatory Pre-deposit (Section 107(6))

Condition Precedent: For an appeal filed by a taxpayer under Section 107(1), payment of a specified pre-deposit amount is mandatory. The appeal cannot be filed unless this condition is met.¹ Departmental appeals under Section 107(2) are exempt from this requirement.¹²
Calculation: The pre-deposit consists of two parts:

(a) Admitted Liability: The appellant must pay, in full, the amount of tax, interest, fine, fee, and penalty arising from the impugned order that they admit is payable.¹
(b) Disputed Tax Amount: A sum equal to 10% of the remaining amount of tax in dispute arising from the said order.¹
Maximum Cap (Finance (No. 2) Act, 2024): The 10% pre-deposit on the disputed tax amount under Section 107(6)(b) is subject to a monetary ceiling. The Finance (No. 2) Act, 2024, amended Section 107(6) to reduce this cap.

Previous Cap: Rs. 25 crore under CGST and Rs. 25 crore under SGST/UTGST (totaling Rs. 50 crore).²⁴ For IGST, the cap was Rs. 50 crore.²⁴
Reduced Cap (Effective November 1, 2024): The maximum pre-deposit is now Rs. 20 crore under CGST and Rs. 20 crore under SGST/UTGST (totaling Rs. 40 crore).⁷ For IGST, the cap is reduced to Rs. 40 crore.²⁵ This reduction aims to alleviate the financial strain on taxpayers involved in high-value disputes, potentially facilitating the appeal process and reducing working capital blockages.²⁵
Special Cases:

Detention/Seizure Orders (Section 129(3)): For appeals against orders relating to the detention, seizure, and release of goods and conveyances under Section 129(3), the pre-deposit is 25% of the penalty amount specified in the order.² This higher percentage reflects the nature of such enforcement actions.
Budget 2025 Proposal (Penalty-Only Appeals): Recognizing the burden of the 25% pre-deposit based solely on penalty, particularly in Section 129 cases, the Union Budget 2025 proposed amending Section 107(6).²⁹ The proposal aims to reduce the pre-deposit to 10% of the penalty amount for appeals involving only a demand of penalty (without any tax demand).¹² This change, intended to make the appeal remedy more accessible in penalty-centric disputes, is yet to be notified and implemented.³⁴ The delay in notification creates uncertainty for taxpayers facing such orders.
Amnesty Scheme (Expired): A temporary amnesty scheme (Notification No. 53/2023-CT) allowed appeals against certain past orders to be filed by January 31, 2024, with a reduced pre-deposit of 12.5% of the disputed tax (minimum 2.5% in cash).¹⁰ This served as a one-time relief measure.

Mode of Payment: The pre-deposit amount can be paid using funds available in the Electronic Cash Ledger or the Electronic Credit Ledger (Input Tax Credit – ITC).² CBIC circulars have provided clarifications regarding the utilization of ITC for pre-deposits.²
Stay of Recovery: Once the required pre-deposit is paid, the recovery proceedings for the balance amount in dispute are automatically deemed to be stayed until the disposal of the appeal by the Appellate Authority.⁹

D. The Appellate Process

Hearing: The Appellate Authority must provide the appellant an opportunity of being heard.⁹
Adjournments: The hearing may be adjourned for reasons to be recorded in writing, if sufficient cause is shown. However, no more than three adjournments can typically be granted to a party.¹
Additional Grounds: The Appellate Authority may allow the appellant to add any ground of appeal not initially specified, if satisfied that the omission was not willful or unreasonable.¹
Additional Evidence: Rule 112 of the CGST Rules restricts the production of additional evidence (oral or documentary) before the Appellate Authority, unless certain conditions are met: (a) the adjudicating authority refused to admit evidence that ought to have been admitted; (b) the appellant was prevented by sufficient cause from producing evidence called upon by the adjudicating authority; (c) the appellant was prevented by sufficient cause from producing relevant evidence; or (d) the adjudicating authority passed the order without giving sufficient opportunity to adduce relevant evidence.²⁰ If additional evidence is admitted, the reasons must be recorded in writing.²⁰
Powers of Appellate Authority: The authority can make such further inquiry as may be necessary.¹ It has the power to pass an order confirming, modifying, or annulling the decision or order appealed against.¹
Orders Enhancing Liability: The Appellate Authority can pass orders that adversely affect the appellant, such as enhancing any fee, penalty, or fine, increasing the value of confiscated goods, or reducing the amount of refund or ITC. However, such an order cannot be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed adverse order (via a show cause notice).¹ Similarly, an order requiring payment of tax not paid, short-paid, erroneously refunded, or ITC wrongly availed/utilized requires a show cause notice and opportunity of hearing.¹
No Remand Power: A significant feature of Section 107(11) is the explicit prohibition on the Appellate Authority from remanding the case back to the adjudicating authority that passed the original order.¹ This contrasts with powers often available under previous tax regimes.⁵ This provision is designed to prevent delays associated with remanding cases and aims for faster resolution at the first appeal stage. However, it necessitates the Appellate Authority to conduct thorough inquiries and decide issues potentially not fully examined below, potentially leading to more complex proceedings at this level.
Time Limit for Disposal: Section 107(13) provides an advisory timeline: the Appellate Authority should, where possible, hear and decide every appeal within one year from the date on which it is filed.¹ Any period during which the issuance of the order is stayed by a Court or Tribunal is excluded from this one-year computation.¹

E. Withdrawal and Finality of Order

Withdrawal of Appeal: An appellant can file an application (in FORM GST APL-01/03W) to withdraw the appeal at any time before the issuance of a show cause notice under Section 107(11) or the final order, whichever is earlier.² If the final acknowledgement (FORM GST APL-02) has already been issued, withdrawal is subject to the approval of the Appellate Authority, which must decide within seven days of the application.² If an appeal is withdrawn, any fresh appeal must be filed within the original time limits specified in Section 107(1) or (2).¹² The pre-deposit amount paid for a withdrawn appeal is typically adjusted against the total demand of the original order.²
Order: The order passed by the Appellate Authority must be a speaking order, stating the points for determination, the decision thereon, and the reasons for the decision.⁶
Summary Order: Along with the detailed order under Section 107(11), the Appellate Authority must issue a summary of the order in FORM GST APL-04, clearly indicating the final amount of demand confirmed.⁸
Communication: The final order must be communicated to the appellant, the respondent (if applicable), the adjudicating authority, and the jurisdictional Commissioner of CGST and SGST/UTGST.¹
Finality: The order passed by the Appellate Authority under Section 107 is final and binding on the parties, subject only to the provisions for revision (Section 108) or further appeal to the GSTAT (Section 112/113), High Court (Section 117), or Supreme Court (Section 118).⁹

F. Key Judicial Interpretations (Section 107)

Scope of Appeal: Courts have held that the Appellate Authority cannot travel beyond the scope of the original Show Cause Notice (SCN). Introducing new allegations or grounds (e.g., alleging suppression under Section 74 when the SCN was based on ITC mismatch under Section 73) at the appellate stage is impermissible.³⁸ The appeal must be decided based on the issues framed in the original proceedings.
Aggrieved Person: Consistent interpretation requires the appellant to demonstrate how the order adversely affects their legal rights or imposes a liability.⁵
Limitation Period: The 3+1 month (or 6+1 month) limitation period is strictly enforced. Courts have upheld the rejection of appeals filed beyond this period, confirming the lack of inherent power to condone further delays.¹⁸ The interpretation of “month” as a calendar month is also a significant judicial clarification.¹⁹
Pre-deposit: The mandatory nature of the pre-deposit under Section 107(6) as a condition for filing an appeal is generally upheld.
No Remand: The statutory bar on remand under Section 107(11) is acknowledged as a key procedural feature.⁵

G. Table: Summary of Section 107 Appeal Parameters

Parameter	Details for Taxpayer Appeal (S.107(1))	Details for Departmental Appeal (S.107(2))
Appellant	Any person aggrieved by the order	Commissioner (through authorized subordinate officer)
Appellate Authority	Commissioner (Appeals) or Addl. Commissioner (Appeals) (Rule 109A)	Commissioner (Appeals) or Addl. Commissioner (Appeals) (Rule 109A)
Order Appealed Against	Decision/Order of Adjudicating Authority (subject to S.121)	Decision/Order of Adjudicating Authority (subject to S.121)
Time Limit	3 months from communication of order	6 months from communication of order
Condonation Limit	Further 1 month (on sufficient cause)	Further 1 month (on sufficient cause)
Pre-deposit	Mandatory: Full admitted liability + 10% of disputed tax (Max Cap: Rs. 20 Cr CGST + Rs. 20 Cr SGST/UTGST, w.e.f. 01.11.2024). 25% of penalty for S.129 orders. Budget 2025 proposes 10% for penalty-only orders.	Not Applicable
Form No.	FORM GST APL-01	FORM GST APL-03
Key Power/Limitation	Cannot Remand Case Back to Adjudicating Authority (S.107(11))	Cannot Remand Case Back to Adjudicating Authority (S.107(11))

III. Revisionary Powers: The Revisional Authority (Section 108)

Section 108 provides a distinct mechanism allowing designated higher authorities to review orders passed by their subordinates, primarily to correct errors that are detrimental to revenue. This is not an appeal process initiated by the taxpayer but an internal review power vested with the department.

A. Scope and Invocation

Purpose: The core objective of Section 108 is to safeguard the interests of the Revenue by enabling the correction of erroneous orders passed by subordinate officers.³⁹ It acts as a check against decisions that might lead to revenue loss due to illegality, impropriety, or failure to consider material facts.³
Revisional Authority: Section 2(99) defines the Revisional Authority.⁴ Notification No. 5/2020-Central Tax, dated January 13, 2020, appointed specific officers as Revisional Authorities: (a) Principal Commissioner or Commissioner of Central Tax for decisions/orders passed by Additional or Joint Commissioners; and (b) Additional or Joint Commissioner of Central Tax for decisions/orders passed by Deputy Commissioners, Assistant Commissioners, or Superintendents.⁶
Invocation: The revision process can be initiated by the Revisional Authority on their own motion (suo motu), based on information received, or upon request from the Commissioner of State Tax or Union Territory Tax.⁶ Observations made by the Comptroller and Auditor General (C&AG) of India can also trigger revision.⁶ Importantly, a taxpayer cannot apply for revision under this section.⁴⁰
Grounds for Revision: For the Revisional Authority to exercise power, the decision or order passed by the subordinate officer must satisfy two conditions: it must be considered (i) erroneous and (ii) prejudicial to the interest of revenue.³ The term “erroneous” can encompass orders that are illegal, improper, or have failed to consider material facts available on record.³ The authority examines the “record,” which includes all records relating to the proceedings available at the time of examination.⁴² The term “decision” under this section is broad and includes even intimations given by an officer lower in rank than the Revisional Authority ¹⁷, potentially allowing review of communications beyond formal orders if they meet the criteria of being erroneous and prejudicial to revenue.

B. Limitations and Exclusions (Section 108(2))

The power of revision under Section 108 is subject to several significant limitations:

Order Under Appeal: The Revisional Authority cannot exercise its power if the order in question is already the subject matter of an appeal filed before the Appellate Authority (S.107), the GSTAT (S.112), the High Court (S.117), or the Supreme Court (S.118).⁴ Judicial interpretation clarifies that “subject to an appeal” means an appeal must have actually been filed and be pending; the mere existence of the right to appeal or the expiry of the appeal period does not automatically bar revision if no appeal was filed.⁴⁵
Time Limits:

Waiting Period: Revision cannot be initiated if the six-month period allowed for the department to file an appeal under Section 107(2) has not yet expired.⁴ This ensures the primary appeal route for the department is considered first.
Outer Limit: Revision power cannot be exercised if more than three years have elapsed since the passing of the decision or order sought to be revised.⁴

Prior Revision: The power cannot be exercised if the order has already been taken up for revision under Section 108 at an earlier stage.⁴
Revision Order Itself: A revisional order passed under Section 108(1) cannot itself be revised under the same section.⁶
Non-Appealable Orders (S.121): As Section 108 is subject to Section 121, orders that are non-appealable (like transfer orders, seizure orders, prosecution sanctions, installment orders) cannot be revised.⁸
Proviso to Section 108(2): An important exception exists. Even if an order has been appealed, the Revisional Authority may still pass a revision order concerning any point which was not raised and decided in the appeal before the AA, GSTAT, HC, or SC. This action must be taken before the expiry of one year from the date of the order in such appeal, or before the expiry of three years from the date of the original order sought to be revised, whichever is later.⁶ This proviso allows the department to address distinct errors prejudicial to revenue that were overlooked during the appeal process, without reopening issues already settled by the appellate forum. The “whichever is later” clause provides a potentially extended timeframe in certain scenarios.

C. Procedural Aspects

Stay Order: Upon deciding to examine an order, the Revisional Authority may, if considered necessary, stay the operation of the subordinate’s decision or order for such period as deemed fit, pending the completion of the revision process.³
Notice and Hearing: If the Revisional Authority proposes to pass an order that is likely to adversely affect the person concerned, Rule 109B mandates serving a notice in FORM GST RVN-01 and providing a reasonable opportunity of being heard.⁸ Principles of natural justice must be followed, including sharing adverse material.³⁹
Further Inquiry: The Revisional Authority can make such further inquiry as may be necessary to ascertain the facts and legality of the matter.⁸
Revision Order: After examination, hearing, and inquiry, the Revisional Authority passes such order as deemed just and proper. This can include enhancing, modifying, or annulling the original decision or order.⁸ The order must be reasoned.⁴¹
Summary Order: Similar to the Appellate Authority, the Revisional Authority must, along with its order under Section 108(1), issue a summary of the order in FORM GST APL-04, clearly indicating the final amount of demand confirmed.¹⁴

D. Timelines for Revision

Initiation: Cannot commence before 6 months from the date of the original order (allowing time for departmental appeal under S.107(2)).⁴⁰
Completion: The final revision order must be passed within three years from the date of the original decision or order being revised.⁴
Exclusion Periods: Certain periods are excluded when calculating the three-year limitation:

If the order involves an issue decided by GSTAT/HC, and an appeal against that GSTAT/HC decision is pending before HC/SC, the time between the GSTAT/HC decision date and the HC/SC appeal decision date is excluded.¹¹
Any period during which the issuance of the revision order under Section 108(1) is stayed by an order of a Court or the Appellate Tribunal is excluded.⁶
Revision on Points Not Appealed: The time limit is within 1 year from the date of the appeal order or 3 years from the date of the original order, whichever is later.⁶

E. Distinguishing Revision (S.108) from Appeal (S.107)

While both Section 107 and Section 108 provide avenues for reviewing an order passed by an adjudicating authority, they are fundamentally different mechanisms:

Initiator: Appeal under S.107 is primarily initiated by the person aggrieved (taxpayer), although the department can also appeal. Revision under S.108 is initiated only by the Revenue (Revisional Authority), either suo motu or on request/information. Taxpayers cannot seek revision.⁴⁰
Purpose: Appeal seeks redressal for the aggrieved party against an unfavorable order. Revision aims to protect revenue by correcting erroneous orders passed by subordinates that are prejudicial to revenue interests.
Authority: Appeals go to a designated Appellate Authority (Commr(A)/Addl Commr(A)). Revision is conducted by a higher-ranked Revisional Authority (Pr Commr/Commr or Addl/Jt Commr).
Grounds: Appeal requires the appellant to be “aggrieved.” Revision requires the order to be “erroneous” and “prejudicial to the interest of revenue.”
Time Limit (Initiation): Appeal: 3 months (taxpayer) / 6 months (dept) from communication. Revision: Generally, can only be initiated after 6 months but must be completed within 3 years of the original order date.
Pre-deposit: Mandatory for taxpayer appeals under S.107. Not applicable for initiating revision under S.108.
Interplay: Revision is barred if an appeal against the same order has been filed under S.107/112/117/118. Appeal remains the primary statutory remedy.

F. Key Judicial Interpretations (Section 108)

Bar due to Appeal: Courts have affirmed that the bar under S.108(2)(a) applies only when an appeal is actually filed and pending, not merely because the appeal remedy is available.⁴⁵ A revision petition cannot be dismissed solely on the ground that an appeal could have been filed but was not.⁴⁶
Scope of Authority: Revisionary power is meant for reviewing orders of subordinate officers. A Revisional Authority (like a Commissioner) cannot use Section 108 (or Section 107(2)) to review or effectively appeal against an order passed by the Appellate Authority.⁴⁵
Natural Justice: Revision orders passed without proper examination of records, without providing clear reasons, or without affording an adequate opportunity of being heard violate principles of natural justice and are liable to be set aside.⁴¹
Timeliness: The revision order must be passed within the statutory three-year limit, considering applicable exclusions.⁴⁵
Retrospective Amendments: Revisional Authorities are expected to consider the impact of retrospective legislative amendments (e.g., Section 16(5)/(6) relating to ITC time limits) when examining or passing orders. If an order was passed without considering such amendments, rectification procedures might be applicable.³⁷

G. Table: Comparative Analysis: Appeal (S.107) vs. Revision (S.108)

Feature	Section 107 (Appeal)	Section 108 (Revision)
Purpose	Redressal for aggrieved party (Taxpayer/Dept)	Protect Revenue from erroneous orders of subordinates
Initiated By	Aggrieved Person (Taxpayer/Dept)	Revisional Authority (Dept only – suo motu/request/info)
Time Limit (Initiation)	Within 3 months (Taxpayer) / 6 months (Dept) from communication	Generally after 6 months from order date; Order must be passed within 3 years
Condonation (Initiation)	Further 1 month (on sufficient cause)	Not applicable (fixed 3-year outer limit for passing order)
Authority	Appellate Authority (Commr(A)/Addl Commr(A))	Revisional Authority (Pr Commr/Commr or Addl/Jt Commr)
Grounds	Being “aggrieved” by the order	Order is “erroneous” AND “prejudicial to the interest of revenue”
Pre-deposit	Mandatory for Taxpayer (10% disputed tax, subject to cap)	Not Applicable
Barred By	Certain non-appealable orders (S.121)	Appeal filed (S.107/112/117/118), Time limits (expiry of 6mths/ >3yrs), Prior revision
Remand Power	No power to remand to Adjudicating Authority	Can modify/annul order (remand not explicitly mentioned, but power seems broader)
Next Forum	Appeal to GSTAT (S.112)	Appeal to GSTAT (S.112)

IV. Second Appeal: The Goods and Services Tax Appellate Tribunal (GSTAT) (Section 112)

The GSTAT serves as the second forum for appeal within the GST framework, providing an avenue to challenge orders passed by the first Appellate Authority (under S.107) or the Revisional Authority (under S.108).

A. GSTAT Overview

Role: To hear appeals against orders passed under Section 107 or Section 108 of the CGST/SGST/UTGST Acts.⁶ It acts as a crucial second-tier adjudicatory body before matters potentially escalate to the High Court or Supreme Court.
Constitution: The Act envisages a structure comprising a Principal Bench (located in New Delhi ⁵⁰) and various State Benches.¹² The Finance Act, 2023, amended the nomenclature, replacing references to “National Bench” and “Regional Benches” with “Principal Bench,” and “Area Benches” with “State Benches”.⁵² The Principal Bench has exclusive jurisdiction to hear appeals where one of the issues involved relates to the place of supply.³ All other appeals lie before the respective State Benches.
Members: The Tribunal comprises a President, Judicial Members, and Technical Members (Central and State). Specific qualifications are prescribed, such as the President being a former Supreme Court Judge or High Court Chief Justice, and Judicial Members being former High Court Judges or District Judges with requisite experience.²⁶
Current Operational Status: The operationalization of GSTAT has faced significant delays since the inception of GST.²⁵ While the President, Justice (Retd.) Sanjaya Kumar Mishra, was appointed and took oath on May 6, 2024 ⁵⁰, and the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 were notified and came into effect on April 24, 2025 ³⁴, the benches across various states are still in the process of becoming fully functional. The government has notified the establishment of the Principal Bench in New Delhi and 31 State Benches ⁵⁰, but staffing and infrastructure setup are ongoing.⁵⁷ A dedicated GSTAT e-filing portal is also being launched.⁵⁰ This delay has created a backlog of cases and forced taxpayers to seek remedies through writ petitions in High Courts, leading to the issuance of specific procedural clarifications by CBIC (like Circular 224/18/2024-GST) to manage the interim period.

B. Initiating the Appeal (Section 112(1), 112(3))

Who can Appeal:

Any person aggrieved by an order passed under Section 107 (by AA) or Section 108 (by RA) can file an appeal to the GSTAT.⁶
The Commissioner (CGST/SGST/UTGST) can, if an order by the AA or RA is considered not legal or proper, direct an authorized officer to file an application (treated as an appeal) to the GSTAT.⁴⁸
Time Limits:

Taxpayer/Aggrieved Person (S.112(1)): Appeal must be filed within three months from the date the order appealed against is communicated.⁶
Department (S.112(3)): Application must be filed within six months from the date the order appealed against is communicated.³
Impact of GSTAT Non-Operationalization on Time Limit: The calculation of the start date for these time limits has been subject to specific orders and amendments due to the delay in GSTAT’s constitution:

Initial Position (RoD 2019): The CGST (Ninth Removal of Difficulties) Order, 2019, stipulated that the 3-month/6-month period would commence from the later of (i) the date of communication of the order, or (ii) the date on which the President or State President of the GSTAT enters office after its constitution.⁴⁸ With the President taking office on May 6, 2024, this initially set a deadline of August 6, 2024, for many pending appeals.⁵⁶
Current Position (Finance (No. 2) Act, 2024): Recognizing the practical difficulties as benches were not ready by August 2024, Section 112 was amended (effective August 1, 2024).⁴⁸ The start date for the 3-month/6-month limitation period is now the later of (i) the date of communication of the order, or (ii) such date as may be notified by the Government, on the recommendations of the GST Council.²⁶ This amendment provides the government the flexibility to notify a specific date from which the limitation period will begin to run for orders passed before that date, ensuring taxpayers have adequate time once the Tribunal is practically accessible.

Condonation of Delay (S.112(6)): GSTAT has the discretion to admit an appeal (under S.112(1)) or application (under S.112(3)) filed within a further period of three months after the expiry of the initial 3/6 month period, if satisfied that there was sufficient cause for the delay.³
Discretion to Refuse Appeal (S.112(2)): GSTAT may, in its discretion, refuse to admit an appeal if the amount of tax or ITC involved, or the difference thereof, or the amount of fine, fee, or penalty determined by the impugned order, does not exceed Rs. 50,000.³

C. Procedural Requirements

Forms:

Appeal by Aggrieved Person: FORM GST APL-05.²⁰
Departmental Application: FORM GST APL-07.²⁰
Memorandum of Cross-Objections: FORM GST APL-06.²⁰
Withdrawal Application: FORM GST APL-05/07W.⁶² Appeals and applications are to be filed electronically via the GSTAT portal ⁵⁰, though manual filing may be permitted by the Registrar in specific cases.⁶¹
Fees (Rule 110(5) & S.112(10)):

Appeal Filing/Restoration: Fee is calculated at Rs. 1,000 for every Rs. 1 lakh (or part thereof) of the tax or ITC involved (or difference thereof) or the amount of fine, fee, or penalty determined, subject to a maximum fee of Rs. 25,000.²⁰
Order Not Involving Demand: If the appeal relates to an order not involving any monetary demand (tax, interest, fine, fee, penalty), a fixed fee ⁶¹ is payable.
Rectification/Other Applications: Fees may be prescribed for other applications ⁴⁸, but there is no fee for applications seeking rectification of errors under Section 112(10).⁶¹
Documentation and Filing Process:

Appeals must be filed electronically along with relevant documents.⁵¹
A provisional acknowledgement is issued immediately upon filing.²⁰
If the impugned order (from AA/RA) is not uploaded on the common portal, the appellant must submit/upload a self-certified copy within seven days of filing FORM GST APL-05/APL-07.²⁰
A final acknowledgement in FORM GST APL-02, containing the appeal number, is issued after removal of any defects and submission of required documents.²⁰ The appeal is formally treated as filed only upon issuance of this final acknowledgement.²⁰
The appeal/application must be signed as per Rule 26.⁶¹
The GSTAT (Procedure) Rules, 2025, provide detailed requirements regarding the content of the appeal memo (cause title, facts, grounds), accompanying documents (order copy, SCN, relied-upon documents, fee payment proof), and electronic filing procedures.⁵⁰

D. Mandatory Pre-deposit (Section 112(8))

Condition Precedent: Similar to the first appeal, no appeal by a taxpayer under Section 112(1) can be filed unless a further pre-deposit is made.³²
Calculation: The pre-deposit at the GSTAT stage involves:

(a) Admitted Liability: Payment in full of the amount of tax, interest, fine, fee, and penalty arising from the impugned order (AA/RA order) that is admitted by the appellant.³²
(b) Disputed Tax Amount: Payment of a sum equal to 10% (as amended by Finance (No. 2) Act, 2024, reduced from the earlier 20%) of the remaining amount of tax in dispute arising from the impugned order.²⁴ This payment is in addition to the amount already paid as pre-deposit under Section 107(6) at the first appeal stage.²⁴
Maximum Cap (Finance (No. 2) Act, 2024): This additional 10% pre-deposit on disputed tax is also subject to a reduced monetary ceiling, effective November 1, 2024:

Previous Cap: Rs. 50 crore under CGST and Rs. 50 crore under SGST/UTGST (totaling Rs. 100 crore).²⁴ For IGST, the cap was Rs. 100 crore.²⁴
Reduced Cap (Effective November 1, 2024): The maximum additional pre-deposit is now Rs. 20 crore under CGST and Rs. 20 crore under SGST/UTGST (totaling Rs. 40 crore).²⁶ For IGST, the cap is reduced to Rs. 40 crore.²⁴ The combined effect of the reduction in percentage (20% to 10%) and the cap (Rs 50 Cr to Rs 20 Cr per Act) significantly lowers the pre-deposit burden at the second appeal stage.²⁸
Budget 2025 Proposal (Penalty-Only Appeals): To ensure consistency with the proposed change in Section 107, the Budget 2025 proposes inserting a new proviso to Section 112(8). This would mandate an additional pre-deposit of 10% of the penalty amount for appeals before GSTAT involving only a demand of penalty (no tax demand).¹² This addresses a potential gap where such appeals might not have attracted an additional pre-deposit under the previous structure if no tax was in dispute at the GSTAT stage. This proposal, if enacted and notified, would create a specific pre-deposit liability for penalty-only appeals at this level, in addition to the S.107 pre-deposit already paid.

E. Cross-Objections & Withdrawal

Memorandum of Cross-Objections (S.112(5)): When an appeal is filed, the respondent (the party who benefited from the AA/RA order) receives a notice. Even if they did not file their own appeal, they can file a memorandum of cross-objections within 45 days of receiving the notice.⁶ This is filed in FORM GST APL-06 (electronically) ²⁰ and allows the respondent to challenge parts of the original order that were against them. The memorandum is treated procedurally like an appeal.⁶
Condonation for Cross-Objections: GSTAT can condone a delay of up to 45 additional days for filing cross-objections if sufficient cause is shown.⁶
Withdrawal (Rule 113A): The newly inserted Rule 113A allows an appellant to apply for withdrawal of their appeal (filed under S.112(1)) or application (filed under S.112(3)) using FORM GST APL-05/07W.⁶² This can be done anytime before the Tribunal issues its final order under Section 113(1). If the final acknowledgement (FORM GST APL-02) has been issued, withdrawal requires the Tribunal’s approval, which should be decided within 15 days. A fresh appeal/application can be filed after withdrawal, but it must adhere to the original time limits under Section 112.⁶²

F. Stay of Recovery (Section 112(9))

Automatic Stay: Section 112(9) provides that once the appellant pays the mandatory pre-deposit under Section 112(8), the recovery proceedings for the balance disputed amount are deemed to be stayed until the GSTAT disposes of the appeal.⁴⁸
Practical Application (Circular 224/18/2024-GST): Due to the non-operational status of GSTAT, taxpayers could not formally file appeals and pay the S.112(8) pre-deposit to avail the automatic stay. CBIC Circular No. 224/18/2024-GST, dated July 11, 2024, provides a workaround ⁵⁶:

Taxpayers intending to appeal to GSTAT must pay an amount equivalent to the pre-deposit required under Section 112(8) (i.e., admitted liability plus 10% of disputed tax, subject to the Rs. 20 Cr + Rs. 20 Cr cap).⁵⁶ Payment is to be made through the GST portal via “Services >> Ledgers >> Payment towards demand,” selecting the relevant order in the Electronic Liability Register (ELL) Part-II.⁶⁴
They must also file a written undertaking/declaration with the jurisdictional proper officer, stating their intention to file the appeal before GSTAT once it becomes operational and within the prescribed time limits.⁵⁶
Upon fulfilling these two conditions (payment and undertaking), the recovery of the remaining confirmed demand is stayed as per Section 112(9).⁵⁶ The amount paid is adjusted against the actual pre-deposit when the appeal is formally filed later.⁵⁶
Failure to make the payment or provide the undertaking allows the department to initiate recovery proceedings, assuming the taxpayer does not intend to appeal.⁵⁶
This circular, while providing a practical solution, effectively requires payment of the second-stage pre-deposit potentially before the statutory limitation period under the amended Section 112 even commences, raising legal questions about its strict conformity with the Act.⁵⁶ However, High Courts have acknowledged this procedure and granted stays contingent on payment as per the circular’s guidelines.⁶⁵
FORM GST DRC-03A: For cases where payments were inadvertently made via FORM GST DRC-03 instead of the proper pre-deposit route, the circular references the mechanism (introduced by Rule 142(2B) and FORM GST DRC-03A) for adjusting such payments towards the pre-deposit requirements under S.107 and S.112 upon filing FORM GST DRC-03A.⁶³ Temporary relief from recovery is granted until the DRC-03A functionality is available on the portal, provided the taxpayer informs the officer.⁶³

G. The Tribunal Process

Hearing: Parties are entitled to be heard.⁴⁹ The GSTAT (Procedure) Rules, 2025, detail the hearing process, including the order of arguments (appellant, respondent, rebuttal) and provisions for hybrid (physical/virtual) hearings.⁵¹ Procedures exist for handling defaults in appearance by either party (dismissal for default, ex-parte decision).⁵¹
Powers: GSTAT possesses the same powers as a civil court under the Code of Civil Procedure, 1908, for trying a suit, including summoning witnesses, compelling document production, receiving evidence on affidavit, issuing commissions, etc..²⁶ It is deemed a Civil Court for certain purposes.⁴⁹ It also has inherent powers to make orders necessary to secure the ends of justice ⁵¹ and can award costs.⁵¹
Remand Power: Significantly, unlike the first Appellate Authority, the GSTAT has the power to refer the case back (remand) to the authority whose order was appealed (i.e., the AA or RA) or even to the original adjudicating authority, with specific directions for fresh adjudication or consideration of additional evidence.⁵
Additional Evidence: Similar restrictions apply as for the AA (Rule 112, CGST Rules / Rule 5, GSTAT Procedure Rules ²⁰). Admission requires specific circumstances and recording of reasons.²⁰
Decision: GSTAT can pass orders confirming, modifying, or annulling the decision or order appealed against, or it can remand the case.⁴⁹ Decisions are taken by majority vote of the members constituting the Bench. If members are equally divided, the matter is referred to the President (for Principal Bench) or State President (for State Bench), who may refer it to other Benches for resolution based on the majority opinion of all members who heard the case.⁴⁹
Time Limit for Disposal: The Tribunal should endeavor to decide appeals, where possible, within one year from the date of filing.⁴⁹ Periods of stay granted by higher courts are excluded.⁴⁹
Amendment of Order: GSTAT can amend its own order to rectify any mistake apparent from the record within three months from the date of the order. If the amendment adversely affects a party (increases liability, reduces refund/ITC), an opportunity of being heard must be given.⁴⁹
Communication: The Tribunal’s order is communicated to the AA or RA, the appellant, the respondent, and the jurisdictional Commissioners of CGST and SGST/UTGST.⁴⁹

H. Key Judicial Interpretations (Section 112)

Refund Pending Appeal Intent: High Courts have ruled that the Revenue cannot withhold refunds granted by the Appellate Authority merely based on an intention to file an appeal before the GSTAT, particularly when the GSTAT is non-functional. A formal appeal filing and stay order (or compliance with interim procedures like Circular 224) would be necessary.⁵⁹
Stay via Pre-deposit: High Court orders demonstrate the acceptance of the procedure outlined in Circular 224 (payment of the additional 10% pre-deposit and undertaking) as sufficient compliance to grant a stay on recovery pending GSTAT’s operationalization.⁶⁵
Pre-deposit Waiver: The statutory requirement for pre-deposit is generally considered mandatory, and courts typically do not grant waivers unless the statute itself provides such a power.⁵⁶

I. Table: Summary of Section 112 Appeal Parameters

Parameter	Details
Appellant	Aggrieved Person (Taxpayer) / Department (Commissioner via authorised officer)
Authority	GSTAT (Principal Bench for Place of Supply issues; State Bench for others)
Order Appealed Against	Order of Appellate Authority (S.107) or Revisional Authority (S.108)
Time Limit	3 months (Taxpayer) / 6 months (Dept) from communication OR later date notified by Govt (due to GSTAT delay – Finance Act 2024 amendment)
Condonation	Further 3 months (on sufficient cause)
Pre-deposit (Additional)	Mandatory for Taxpayer: Full admitted liability + 10% of remaining disputed tax (w.e.f. 01.11.2024, reduced from 20%). Max Cap: Rs. 20 Cr CGST + Rs. 20 Cr SGST/UTGST (w.e.f. 01.11.2024). Budget 2025 proposes additional 10% for penalty-only orders.
Form No.	Appeal: FORM GST APL-05; Application: FORM GST APL-07; Cross-objection: FORM GST APL-06; Withdrawal: FORM GST APL-05/07W
Key Powers	Can Remand Case Back (to AA/RA/Adjudicating Authority)
Stay of Recovery	Automatic upon payment of S.112(8) pre-deposit (S.112(9)). Interim procedure via Circular 224 (Payment + Undertaking) due to GSTAT delay.
GSTAT Status Impact	Delayed operationalization led to RoD 2019, Finance Act 2024 time limit amendment, Circular 224 procedure, and reliance on HC writs.

V. Appeal to the High Court (Section 117)

The High Court serves as the third level of appeal in the GST hierarchy for most disputes, focusing specifically on legal questions.

A. Basis for Appeal

Orders Appealable: An appeal lies to the High Court only against orders passed by the State Benches of the GSTAT.⁵² Orders passed by the Principal Bench of GSTAT (typically involving place of supply issues) are directly appealable to the Supreme Court under Section 118.³
Grounds: The critical requirement for admission of an appeal by the High Court is that the court must be satisfied that the case involves a substantial question of law.³ Appeals purely on questions of fact are generally not maintainable at this stage.

B. Procedure

Who can Appeal: Any person aggrieved by the order of the GSTAT State Bench.⁵²
Time Limit: The appeal must be filed within 180 days from the date on which the GSTAT order is received by the aggrieved person.⁵²
Condonation: Unlike the strict one-month limit for the first appeal, the High Court has the discretion to entertain an appeal filed after the expiry of the 180-day period if it is satisfied that there was sufficient cause for the delay.⁵²
Form: The appeal must be filed in FORM GST APL-08.²⁰ The grounds of appeal and the form of verification must be signed in the manner specified in Rule 26.²³
Hearing Process:

Formulation of Question: If the High Court is satisfied that a substantial question of law is involved, it must formulate that question(s).⁵²
Scope of Hearing: The appeal is heard only on the substantial question(s) of law so formulated.⁵² The respondent is allowed to argue that the case does not involve such a question.⁵²
Additional Questions: The High Court retains the power, for reasons to be recorded, to hear the appeal on any other substantial question of law not initially formulated by it, if satisfied that the case involves such a question.⁵²
Decision and Judgment: The High Court decides the question(s) of law formulated and delivers a judgment containing the grounds for its decision. It may also award costs as it deems fit.⁵²
Determination of Issues: The High Court may determine any issue that was either not determined by the GSTAT State Bench or was wrongly determined by it, by reason of the decision on the substantial question of law.⁵²
Bench Strength: The appeal must be heard by a Bench of not less than two Judges of the High Court.⁵² Decisions are based on the opinion of the majority. A procedure exists for referral in case of a difference of opinion among the judges.⁵²

Applicability of CPC: The provisions of the Code of Civil Procedure, 1908, relating to appeals to the High Court apply to appeals under Section 117, as far as may be.⁵²
Effect of Judgment: Effect is given to the High Court’s judgment based on a certified copy.⁵² The jurisdictional officer issues a statement in FORM GST APL-04 confirming the final demand based on the High Court’s order.²³

C. Key Judicial Interpretations (Section 117)

Judicial interpretations primarily revolve around the threshold requirement of a “substantial question of law.” General jurisprudence on this term, developed under other statutes (like the Income Tax Act or Code of Civil Procedure), is relevant. It typically involves questions that affect the rights of parties, are debatable, have not been previously settled by binding precedent, or have a significant bearing on the outcome of the case.

VI. Appeal to the Supreme Court (Section 118)

The Supreme Court represents the final appellate forum within the GST dispute resolution hierarchy.

A. Basis for Appeal

An appeal lies to the Supreme Court under two circumstances:

(a) Direct Appeal from GSTAT: From any order passed by the Principal Bench of the Appellate Tribunal.⁵³ This route exists because the Principal Bench deals with issues of national importance or inter-state implications, such as the place of supply.
(b) Appeal from High Court: From any judgment or order passed by the High Court in an appeal under Section 117, provided the High Court certifies the case to be a fit one for appeal to the Supreme Court.⁵³ This certification can be granted by the High Court on its own motion or on an application made by the aggrieved party immediately after the judgment/order is passed.⁵³

B. Procedure

Applicability of CPC: The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court apply to appeals under Section 118, as far as may be.⁵³ This governs aspects like the procedure for filing, presentation of the case, etc.
Effect of Order: If the Supreme Court varies or reverses the judgment of the High Court, effect is given to the Supreme Court’s order in the manner provided under Section 117 for High Court judgments (i.e., based on a certified copy).⁵³ The jurisdictional officer issues a final demand confirmation in FORM GST APL-04 based on the Supreme Court’s order.²³
Costs: The costs of the appeal are at the discretion of the Supreme Court.⁵⁴

C. Key Judicial Interpretations (Section 118)

Case law under this section would primarily deal with the criteria applied by High Courts for granting certification under Section 118(1)(b) – typically involving significant legal questions, interpretation of the Constitution, or conflicting High Court decisions. Direct appeals from the Principal Bench will generate jurisprudence once the Bench becomes fully operational and decides cases.

VII. Overarching Considerations

A. Visualized Hierarchy of Appeals and Revision

The following flowchart illustrates the typical progression of disputes under the CGST Act:

Code snippet

graph TD
A[Adjudication Order by Adjudicating Authority] –> B{Appeal / Revision?};
B — S.107 Appeal (Taxpayer/Dept) –> C[Appellate Authority (AA)];
B — S.108 Revision (Dept Only) –> D;
C –> E{Appeal to GSTAT?};
D –> E;
E — S.112 Appeal –> F{GSTAT Bench};
F — State Bench Order –> G{Appeal to High Court?};
F — Principal Bench Order –> I;
G — S.117 Appeal (Substantial Question of Law) –> H[High Court (HC)];
H –> J{Appeal to Supreme Court?};
J — S.118 Appeal (HC Certification) –> I;

subgraph Time Limits & Conditions
direction LR
T1
T2
T3
T4
P1
P2
end

style A fill:#f9f,stroke:#333,stroke-width:2px
style C fill:#ccf,stroke:#333,stroke-width:1px
style D fill:#ccf,stroke:#333,stroke-width:1px
style F fill:#9cf,stroke:#333,stroke-width:1px
style H fill:#9fc,stroke:#333,stroke-width:1px
style I fill:#fcc,stroke:#333,stroke-width:2px

Note: “Prop.” refers to Budget 2025 proposals. Time limits run from communication/receipt of order unless otherwise specified.

B. Consolidated Summary of Forms and Fees

Form No.	Purpose / Relevant Section	Filed By / Issued To	Fees / Key Rule Reference
FORM GST APL-01	Appeal to Appellate Authority (by Taxpayer) / S.107(1)	Taxpayer	No Fee for filing. Pre-deposit required (S.107(6)). Rule 108.
FORM GST APL-02	Final Acknowledgement for Appeal	AA / GSTAT Registrar	Issued after document submission / defect removal. Confirms appeal filing date. Rules 108, 110.
FORM GST APL-03	Application to Appellate Authority (by Dept) / S.107(2)	Department	No Fee. Rule 109.
FORM GST APL-04	Summary of Order confirming final demand	AA / RA / Jurisdictional Officer	Issued with AA/RA order (S.107(11)/S.108(1)) or after HC/SC order. Rules 109B, 113, 115.
FORM GST APL-05	Appeal to Appellate Tribunal (GSTAT) / S.112(1)	Taxpayer/Aggrieved Person	Rs. 1k per Rs. 1 Lakh disputed (Max Rs. 25k). Rs. 5k if no demand involved. Additional Pre-deposit required (S.112(8)). Rule 110.
FORM GST APL-06	Memorandum of Cross-Objections to GSTAT / S.112(5)	Respondent	No specific fee mentioned for cross-objections in Rule 110(5). Rule 110(2).
FORM GST APL-07	Application to Appellate Tribunal (GSTAT) (by Dept) / S.112(3)	Department	No Fee mentioned in Rule 111 (Fees apply to S.112(1) appeals). Rule 111.
FORM GST APL-08	Appeal to High Court / S.117(1)	Aggrieved Person	Court fees as per High Court Rules apply. Rule 114.
FORM GST RVN-01	Notice for Revision / S.108	Revisional Authority	Served on person likely to be adversely affected. Rule 109B.
FORM GST APL-01/03W	Application for Withdrawal of Appeal (AA) / Rule 109C	Appellant (AA)	No Fee mentioned. Rule 109C.
FORM GST APL-05/07W	Application for Withdrawal of Appeal/Application (GSTAT) / Rule 113A	Appellant/Applicant (GSTAT)	No Fee mentioned. Rule 113A.
FORM GST DRC-03A	Application for Intimation of Payment made voluntarily or otherwise adjusted against demand / Rule 142(2B)	Taxpayer	No Fee. Facilitates adjustment of DRC-03 payments towards pre-deposit (Circ 224). Rule 142(2B).

C. Role of Authorized Representatives (Section 116)

Section 116 allows any person who is entitled or required to appear before a GST officer, the Appellate Authority, or the Appellate Tribunal in connection with any proceedings under the Act, to appear through an authorized representative.¹²

Eligible Representatives: The definition includes:

A relative or regular employee.
An advocate (lawyer) practicing in any court in India.
A qualified Chartered Accountant, Cost Accountant, or Company Secretary holding a valid certificate of practice.
A retired officer from the Tax Department (Central/State) or Excise Department, who held a rank not lower than Group-B gazetted officer (subject to a one-year bar on appearing from the date of retirement).
A registered GST Practitioner or Tax Return Preparer.¹²

Procedure: The authorized representative must typically file a Vakalatnama (for lawyers) or a letter of authorization before appearing.⁵¹
Disqualification: Section 116(3) read with Rule 116 provides for the disqualification of an authorized representative (other than lawyers, CAs, CSs, CMAs who are governed by their respective professional bodies) if found guilty of misconduct in connection with GST proceedings, after due inquiry and opportunity of being heard.²⁰

D. Non-Appealable Orders (Section 121)

Section 121 explicitly lists certain decisions or orders passed under the CGST Act against which no appeal can be filed. Since the power of revision under Section 108 is also subject to Section 121 ³⁹, these orders are also generally non-revisable. The non-appealable orders are ⁴:

An order of the Commissioner or other authority empowered to direct the transfer of proceedings from one officer to another officer.
An order pertaining to the seizure or retention of books of account, registers, and other documents.
An order sanctioning prosecution under the Act.
An order passed under Section 80, which relates to the payment of tax and other amounts in installments.

These exclusions primarily cover administrative, procedural, or interim decisions that do not represent a final determination of tax liability or substantive rights, thereby streamlining the appellate process to focus on core disputes.

VIII. Conclusion and Key Takeaways

The CGST Act, 2017, provides a structured, hierarchical framework for resolving disputes arising from orders passed by adjudicating authorities. This framework comprises multiple levels of appeal – the Appellate Authority (S.107), the GSTAT (S.112), the High Court (S.117), and the Supreme Court (S.118) – alongside a distinct revision mechanism available to the Revenue (S.108).

Navigating this system requires careful attention to procedural formalities, strict adherence to statutory time limits, and fulfillment of conditions precedent, most notably the mandatory pre-deposit requirements for taxpayer appeals. The explicit prohibition on remand powers for the first Appellate Authority aims to expedite resolution at the initial stage, while the GSTAT retains this power. Appeals beyond the GSTAT are restricted to matters involving substantial questions of law (High Court) or specific criteria involving the Principal Bench or High Court certification (Supreme Court).

The landscape has been dynamic, influenced significantly by the delayed operationalization of the GSTAT. This necessitated interim measures like CBIC Circular 224/18/2024-GST and legislative amendments via the Finance (No. 2) Act, 2024, particularly concerning the commencement of limitation periods for GSTAT appeals and reductions in pre-deposit caps for both first and second appeals (effective November 1, 2024). Furthermore, proposals in the Union Budget 2025 signal potential changes to pre-deposit rules for penalty-only appeals, aiming to ease the burden in specific cases. The recent notification of the GSTAT (Procedure) Rules, 2025, and the launch of its portal mark progress towards full functionality.

Key takeaways for taxpayers and practitioners include:

Timeliness is Critical: Strictly monitor dates of communication for orders and adhere to the 3-month (taxpayer) / 6-month (department) limit for the first appeal (S.107) and the GSTAT appeal (S.112, starting from the notified date). Condonation periods are limited (1 month for AA, 3 months for GSTAT).
Pre-deposit Calculation: Accurately calculate and pay the mandatory pre-deposit before filing appeals under S.107 and S.112. Understand the distinction between admitted liability and disputed tax, the applicable percentages (10% tax for S.107; additional 10% tax for S.112), the reduced monetary caps (Rs. 20 Cr + Rs. 20 Cr per stage per Act), and special rules for seizure cases (25% penalty, potentially reducing to 10% if proposed changes are notified). Utilize the correct ledgers (Cash/Credit) for payment.
GSTAT Interim Procedure: Follow Circular 224 guidelines (payment + undertaking) to secure a stay of recovery if appealing an AA/RA order before GSTAT is fully operational and the appeal filing window formally opens. Monitor notifications regarding the official start date for the S.112 limitation period.
Appeal vs. Revision: Understand the distinct nature, purpose, initiator, and limitations of appeal (S.107) versus revision (S.108). Revision is a revenue protection tool, not a taxpayer remedy.
Scope Limitations: Be aware of non-appealable orders (S.121) and the fact that the AA cannot remand cases (S.107(11)). Appeals to HC require a substantial question of law (S.117).

The GST appeal and revision framework attempts to balance the need for dispute resolution avenues with the goal of administrative efficiency and timely finality of assessments. Continuous monitoring of legislative updates, procedural rules, GSTAT operational status, and judicial pronouncements remains essential for effective navigation of tax disputes under GST.

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