Compendium on Operation, Procedure and Legal Architecture of GSTAT

B. In accordance with Section 120 of the CGST Act, 2017 read with Circular No. 207/1/2024-GST dated 26^th June 2024, fixing monetary limits for filing appeals or applications by the Department before GSTAT. It clarifies that the department officers are excluded from filing an appeal before the Appellate Tribunal against the order having a demand amounting to Rs. 20,00,000/- aggregate of Tax in dispute.

C. An illustrative list of the exceptions to the above conditions, under which the monetary limit shall not apply:

i. Where any provision is held to be ultra vires to the Constitution of India.

ii. Where any rules are held to be ultra vires to the parent act.

iii. Any order, notification, instruction, or circular is held ultra vires of the CGST Act or SGST/UTGST Act

iv. Matter is related to: Valuation, Classification, Refunds, POS, any other issue which is recurring in nature or involves interpretation of the provisions.

v. Where adverse comments have been passed, and/or cost has been imposed against the Department or its officers.

vi. Any other case or class of cases, where, in the opinion of the Board.

State Bench: Any matter except issues involving place of supply issues and a few notified cases

(a) Pending before two or more State Benches where the President is satisfied that an identical question of law is involved;

(b) where one or more issues involved therein are covered under section 14 or section 14A of the Integrated Goods and Services Tax Act, 2017 (13 of 2017);

(E.g.: Tax on OIDAR services from outside India and Tax on online money gaming by offshore suppliers)

(c) where one or more issues involved therein is covered under section 20 of the Central Goods and Services Tax Act, 2017 (12 of 2017).

(E.g.: ISD credit disputes)

• Appeals, where the total of tax or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not exceed Rs.50 lakhs and which does not involve any question of law may, with the approval of the President, and subject to such conditions as may be prescribed on the recommendations of the Council, be heard by a Single Member. All other cases, shall be heard by a division bench having 2 members, one Judicial Member and one Technical Member.

In other words, taxpayer preferring an appeal in the GSTAT will have to pay 100% of the admitted tax, interest, fee, fine and penalty liability as per the order and 20% of the disputed tax or Penalty (only) liability before filing an appeal in the GSTAT.

Note: CIRCULAR NO. 224/18/2024 dated 11^th July 2024 provides guidelines regarding the initiation of recovery proceedings when the first appeal has confirmed a tax demand, but the Appellate Tribunal (Tribunal) is not yet operational. It also clarifies how to adjust amounts paid towards a demand through FORM GST DRC-03. The steps are mentioned below:

A. When the outstanding demand is reflected in the Liability ledger and the payment is made against the liability directly.

Step 1: The taxpayer must decide to file an appeal against the order of the appellate authority and must pay an amount equal to the required pre-deposit specified under sub-section (8) of section 112 of the CGST Act.

Step 2: The payment of the pre-deposit amount must be made by navigating through the common portal via Services >> Ledgers >> Payment towards demand from the taxpayer’s dashboard.

Step 3: The taxpayer must select the specific outstanding demand order in the Electronic Liability Register (Part-II) against which the payment is being made. The paid amount will be mapped to the order, and the balance liability in the register will be reduced. This amount is held as the pre-deposit for the future appeal to the Tribunal.

Step 4: The taxpayer must provide an undertaking/declaration to the proper officer stating that they will file an appeal against the appellate authority’s order before the Appellate Tribunal once it becomes operational.

B. Steps for Adjusting Pre-deposit amounts Inadvertently paid via FORM GST DRC-03.

i. While FORM GST DRC-03A Functionality is Unavailable:

The taxpayer must intimate the proper officer regarding the payment made through FORM GST DRC-03.

ii. Once FORM GST DRC-03A Functionality is Available

In such cases where the taxpayer has paid an amount that was intended to have been paid towards a particular demand through FORM GST DRC-03, has submitted an application in FORM GST DRC-03A on the common portal, the amount so paid and intimated through the FORM GST DRC-03 will be considered as if the payment was made towards the said demand on the date of such intimation through FORM GST DRC-03.

Note: An application in FORM GST DRC-03A for adjustment of demand liability against the payment through FORM GST DRC-03 cannot be made in cases where, against the payment made through the said FORM GST DRC-03, proceedings have already been concluded by issuance of an order in FORM GST DRC-05 as per Rule 142(3) of CGST Rules, 2017.

(See Special Note on Pre-deposit at Page No. 11 below.)

• An assessee needs to pay an appeal filing fee of Rs. 1,000 for every Rs. 1,00,000 of tax or input tax credit involved, or the difference in tax or input tax credit involved, or the amount of fine, fee or penalty determined in the order appealed against.

Min: 5,000/- (Total for all heads)

Max: 25,000/- (Total for all heads)

• Fees for filing of an appeal in respect of an order not involving any demand of tax, interest, fine, fee or penalty shall be Rs. 5,000/-
• No Fees for applications made before the Appellate Tribunal for rectification of errors

Schedule of Fees

• To streamline the process and reduce data entry errors, users are strongly advised to first download the E-Filing Excel Sheet and enter the appeal details directly into it. This Excel sheet mirrors the structure and functionality of the online filing portal, including all relevant tabs and sections. Completing the sheet beforehand ensures a smoother and more accurate submission experience.

• To file an appeal, a person will be required to go through a registration process on the web portal named: https://efiling.gstat.gov.in.
• One will have to register to create a login for which he will have to choose the correct role (Taxpayer / Tax Official / Authorized Signatory / Advocate / Legal representative / Any Other) and enter the ARN/CRN number of APL-01, APL-03 or RVN-01 and then proceed to register.
• Now enter the GSTIN details and, with the correct captcha code, generate an OTP. On entering the OTP, other details like Legal name, Trade Name, Address, Pin-code, E-mail ID as per the GST portal are fetched automatically and auto-filled.
• For Authorized Representative / Advocate / Legal representative, they need to register themselves at the GSTAT Portal by providing Mobile no. and E-mail ID, which once verified with OTP, they can proceed further.
• If one wants to file an appeal, they will have to choose either Taxpayer or Tax Officers, while the authorized representative option is available for registration and further action in relation to an appeal that is already filed. In other words, an appeal can be filed only through the login of the taxpayer or the tax officer.

1. Order Details: Select the appropriate order against which the appeal before GSTAT is sought to be filed.

2. Basic Case Details: Enter case information. (You can copy-paste this from your offline Excel sheet).

3. Appellant & Respondent Details: Verify or add party information.

4. Add Representative: The taxpayer can add his legal representative either by choosing from the available list of LRs or he can add his own LR by registering him on the GSTAT portal.

(Your representative(s) should have registered themselves in the application; otherwise, their names shall not be available in the Add Representative section)

5. Demand Details: Fill in the demand calculation sheet if APL-04 is not in the system. Also, ensure that the amount of pre-deposit required under section 112(8) is actually paid.

6. Upload Documents: Upload all required documents in PDF format. This includes the detailed Appeal, Affidavits, Impugned Order-in-Appeal, and Vakalatnama.

Note: Multiple PDFs can be uploaded with a maximum PDF size of 20 MB per document.

7. Checklist & Final Preview: Review the final checklist to ensure all information and documents are correct before submission

• The date of issuance of the OIA shall stand excluded from computing the time limit.
• If the last day of the deadline falls on a day when the Tribunal office is closed (like a weekend or holiday), then that day doesn’t count either.
• Also, skip any extra days the office stays closed after that.

Administrative offices: All working days from 9:30 am to 6.00 pm

i. Cause Title shall state- “In the Goods and Service Tax Appellate Tribunal” and also set out the proceedings or order of the authority against which it is preferred.

ii. Full name, parentage, Goods and Services Tax Identification Number, description of each party and address, as applicable, shall also be set out at the beginning of the appeal.

E.g.: The first Appellate Authority passed a single order (OIA – GST APL-04) referring to 6 OIO (DRC-07s) pertaining to multiple FYs.

Now, in such a case, the appellant must file a separate appeal using the prescribed Form for each order-in-original referred to in the OIA.

Multiple Person:

E.g.: The Appellate Authority issued an OIA against the company confirming the tax/Interest/Penalty and also levied Penalty against the Director/Partner/Transporter under Section 122.

Now, in such a case, all the persons charged in the OIA are required to file a separate Appeal. (No. of Appeal = No. of PAN’s)

Note: No Common Appeal or Joint Appeal shall be entertained

In case of Manual Submission: In addition to the above, the Registrar will also sign the endorsement.

i. Distinct Headings

ii. Numbered consecutively

iii. Double Spacing

iv. A4 size paper

v. Page numbering, Indexing and tagged firmly

vi. Verification and Declaration of the facts

i. Certified Copy of the order appealed against, along with the relevant documents, including RUDs.

ii. In case of deficiencies of documents, the Registrar may return the initially submitted documents, and the Appellant needs to rectify the defect and resubmit the Appeal

(Note: A New Appeal Reference Number will be assigned on resubmission.)

• Any non-English document submitted for proceedings before the Appellate Tribunal must be accompanied by an English translation, either mutually agreed upon by both parties or certified as accurate by an authorized representative acting for the parties.
• An appeal or other proceeding will not be scheduled for hearing unless all parties confirm that the document they intend to rely upon is either in English or accompanied by English translations, and the requisite number of copies have been submitted to the Appellate Tribunal.

• If, on scrutiny of an appeal, application or any other document, it is found to be defective, then such document shall, after notice to the party, be returned for compliance, and if there is a failure to comply within seven working days from the date of return, the registrar shall pass an appropriate order.
• Registrar may allow rectification or amendment within a reasonable time or extend the period not exceeding 30 days from the date of filing of the said documents.
• If, after a personal hearing, the Registrar finds that the party has not adequately addressed the defects, the matter will be listed along with the defects before the appropriate Bench of the Tribunal. After hearing the party, the Bench may either allow the appeal to be registered or reject it at its discretion.

Every interlocutory application for:

i. Stay,

ii. Direction,

iii. Rectification in order,

iv. Condonation of delay,

v. Early hearing,

vi. Exemption from production of copy of the order appealed against, or

vii. Extension of time

shall be filed using the prescribed GSTAT FORM-01.

Note: The application must be supported by a mandatory affidavit verifying the facts presented.

• Except with the permission of the Appellate Tribunal, appellant shall not be allowed to plead any ground/s not explicitly stated in the prescribed Form of appeal.
• Nonetheless, in adjudicating the appeal, the Tribunal is not restricted solely to the grounds enumerated in the appeal or those subsequently permitted.
• However, the Tribunal shall not base its decision on any additional grounds unless the party likely to be affected thereby has been afforded a reasonable opportunity to present its case on such grounds.

Section 112(5): On receipt of notice for filing of appeal by the department, the respondent has to file a memorandum of cross objections to the Appellate Tribunal electronically in FORM GST APL-06 within 45 days of the receipt of notice (delay up-to further 45 days will be condoned if a satisfactory reason is given).

A notice or process may also be served on an authorized representative and shall be deemed to be a proper service.

• If the appellant fails to appear on the scheduled hearing date or any adjourned date, the Appellate Tribunal may, at its discretion, either dismiss the appeal for default or proceed to decide it on the merits.
• However, if the appeal is dismissed for default and the appellant subsequently appears and demonstrates sufficient cause for their absence, the Tribunal shall set aside the dismissal and restore the appeal.

Unless an application for continuation is filed by or against the legal successor, executor, receiver, or liquidator within 60 days of the occurrence of the event. However, the Appellate Tribunal may permit a delayed application if it is satisfied that sufficient cause prevented timely filing.

Registrar’s Review: The Registry forwards the application with remarks to the Registrar, who decides on it.

Restrictions on Pending Cases: Inspection is generally not allowed on the hearing date or the day before.

However, if it finds that the appeal lacks sufficient grounds, it may dismiss it outright, provided the reasons for such dismissal are recorded.

Pronouncement of Order

Rectification of Order

(a) if a male, in a close-collared black coat, or in an open-collared black coat, with a white shirt and a black tie; or

(b) if a female, in a black coat over a white sari or any other white dress.

Note: Provided that during the summer season from the 15^th of April to 31^st August, the authorized representatives may, when appearing before a Bench of the Appellate Tribunal, dispense with the wearing of a black coat.

Let us suppose the taxpayer has consolidated OIO of 2 years for FY 2020-21 and FY 2021-22. The breakup of demand as per OIO is as below:

• For FY 2020-21 – Rs. 10,00,000/- (Under the head SGST and CGST total), for an ITC mismatch issue of GSTR 3B vs GSTR 2A/2B.
• For the FY 2021-22 Rs. 5,00,000/- (Under the head SGST and CGST total), for an outward mismatch between GSTR 1 vs GSTR 3B.
• Total Demand for 2 years – Rs. 15,00,000/-

At the First Appellate Stage, the taxpayer would have paid a pre-deposit of 10% of the tax demand as pre-deposit as per Section 107(6) of the CGST Act, 2017, which comes to. Rs 1,50,000/- (Under the head CGST and SGST total) in the present case.

After hearing, the First Appellate Authority was satisfied with the explanation provided for the FY 2020-21 and dropped the said matter. However, continued with the demand for the FY 2021-22 and passed the OIA, granting partial relief to the taxpayer.

Now, as per the procedure mentioned, the taxpayer has to pay an additional 10% as a Pre-deposit amounting to Rs. 50,000/- (under the head SGST and CGST) in addition to the earlier paid amount of Rs. 1,50,000/- as per Section 112(8) of the CGST Act, 2017 to pursue an appeal at the Second Appellate level and seek a refund of Rs. 1,00,000/- for the FY 2020-21 demand which was ruled in favor of the taxpayer at the First Appellate Authority stage.

This scenario clearly demonstrates the undue financial strain placed on taxpayers as well as the additional procedural burden. Even after succeeding for FY 2020–21, the taxpayer’s Rs.1,00,000/– remains blocked, and obtaining a refund from the Department involves much effort and time. At the same time, an additional pre-deposit of Rs. 50,000/– is required merely to pursue the remaining dispute before GSTAT. Such simultaneous blockage of funds and compulsory fresh outflow despite partial relief creates a heavy and unnecessary financial burden, effectively making the appellate process costlier than the dispute itself.

Example 2:

Let us suppose that the taxpayer has an OIO (DRC 07) for the FY 2020-21, the detailed breakup of the OIO is mentioned below:

i. GSTR 3B vs GSTR 2A/2B – Rs 10,00,000/- (under SGST and SGST head total)

ii. GSTR 1 vs GSTR 3B – Rs. 2,50,000/- (under the head IGST)

iii. Total demand Rs. 12,50,000/- (Rs. 5,00,000 under the CGST and SGST head, and Rs. 2,50,000 under the IGST head)

At the First Appellate Stage, the taxpayer must have paid a pre-deposit of 10% of the tax demand as pre-deposit as per Section 107(6) of the CGST Act, 2017, which comes to. Rs 1,25,000/- (Rs. 50,000/- under the head CGST and SGST each respectively and Rs. 25,000/- under the IGST head)) in the present case.

After hearing, the First Appellate Authority was satisfied with the explanation provided for matter (1) only and issued the OIA granting partial relief to the taxpayer.

Now, if the taxpayer wants to challenge the OIA for matter (2) at the Second Appellate Level, whether he has to pay the additional pre-deposit 10% amounting to Rs. 25,000/- under the head IGST and seek a refund of Rs. 1,00,000/- under the head CGST and SGST head.

Break-up of Demand Confirmed in the OIA (all under CGST only, for simplicity):

FY 19-20 – Rs. 7,50,000/-

FY 20-21 – Rs. 9,00,000/-

FY 21-22 – Rs. 12,00,000/-

FY 22-23 – Rs. 15,00,000/-

Total – Rs. 43,50,000/-

Now, as per Rule 18(3) of the GSTAT Rules, 2025, even though the dispute is identical, arises from the same issue, and is disposed of under one consolidated OIA, Rule 18(3) mandates the filing of separate appeals for each OIO referenced.

Note: Under the GSTAT Rules, the filing fee is:

• Rs.1,000 per Rs.1,00,000 of tax/penalty involved,
• Minimum: Rs.5,000 (Total of all tax heads),
• Maximum: Rs.25,000 (Total of all tax heads).

In the present case, the total fees for all 4 Appeals will be as follows:

For FY 19-20 – Rs. 7,500/-

For FY 20-21 – Rs. 9,000/-

For FY 21-22 – Rs. 12,000/-

For FY 22-23 – Rs. 15,000/-

Total Fees – Rs. 43,500/-

If Single Appeal in GSTAT were allowed, the fees would have been Rs. 43,500/- but capped at Rs. 25,000/-. This simple rule has led to the taxpayer paying ₹18,500 extra (≈74% more) merely because the rules force four separate filings for four OIOs — even though the issue, facts, legal grounds, and relief sought are identical and consolidated in a single OIA.

In addition to the financial burden, the taxpayer must also:

• Prepare four sets of documents,
• Track four filing numbers,
• Manage four sets of hearing notices,
• Upload documents four times,
• Pay four separate challans,
• Respond to four defect notices (if any).

This means there are two pre-requisites for a case to be heard by a Single Member Judge:

i. Total of Tax or ITC or Penalty or fine or fees shall not excess Rs. 50,00,000/- for all issues and all tax period covered in order appealed against and

ii. Appeal must not involve a question of law.

Note: “Question of law” is not defined for this purpose in the supplied texts or even the GST Act, which will raise many disputes at pre hearing stage itself.

Rule 24(2) states that the Registrar has the authority to allow rectification or amendment within a reasonable time or extend the period not exceeding 30 days from the date of filing of the said documents.

If a document is filed on Day 1 and the defect is pointed out close to the end of the 30-day limit, the taxpayer still gets only seven working days to fix it. But does this 7-day period continue even if it crosses the 30-day deadline from the original filing? Or does the 30-day limit cut off the right to correct the defect, even if the taxpayer is still within the seven-day window? Since the rules don’t explain how these two timelines interact, taxpayers may end up losing their appeal or application for reasons completely outside their control.

A more efficient solution would be to introduce a JSON‑based filing format, similar to the schema used in GSTR‑9 and GSTR‑9C. By consolidating all appeal‑related data into a single structured file, taxpayers could prepare their submissions offline in a standardized manner and upload them directly to the portal. This would reduce redundancy, enable automated validations, and ensure consistency across all fields.

This exhaustive process not only slows down the preparation of appeals but also heightens the risk of inadvertent omissions and errors. The constant need to ensure that every dropdown aligns with the factual and legal matrix of the case creates anxiety about whether the appeal has been properly categorized. For professionals, it translates into hours of meticulous cross-verification, transforming what should be a substantive legal remedy into a compliance-heavy exercise that tests patience and precision in equal measure.

In practice, this creates procedural difficulties. A single appeal may involve multiple applications, each demanding a separate affidavit. This leads to duplication of effort, delays in urgent filings, and a heightened risk of rejection if even minor affidavit defects occur.

In practice, this requirement places an excessive burden on appellants, since most orders passed by State GST authorities are issued in regional languages. Translating every order, notice, and annexure into English adds significant cost, time, and logistical effort. It also increases the risk of delay or rejection if translations are incomplete, disputed, or not properly certified, especially when large volumes of records are involved.

Therefore, mandatory selection of sections or rules involved by the appellant himself while filing the appeal may lead to incorrect declaration and hence the same need to be removed.

Consequently, any communication or service of notice through the GSTAT Portal cannot be equated with service “on the common portal” as envisaged in Section 169(1)(d). Rule 40 of the GSTAT Rules merely provides a procedural mechanism for the Tribunal to issue and serve notices, but it does not override or expand the statutory definition of “common portal” under Section 2(26) read with Section 146 and the notified portals under Notification No. 9/2018. Therefore, the GSTAT Portal remains distinct and cannot be construed as the “common portal” for statutory communication under the CGST Act, 2017.