CBIC notifies Conditions for GST Appeal Filing with Appellate Authority

Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 53/2023– Central Tax on November 2, 2023, introducing special procedures for filing appeals under the Goods and Services Tax (GST) regime. This notification is aimed at addressing cases where taxable persons couldn’t file an appeal against an order passed by the proper officer within the specified time frame, specifically under sections 73 or 74 of the Central Goods and Services Tax Act, 2017. It provides clarity on the conditions and process for filing appeals under these circumstances.

The CBIC notification lays out the following key provisions:

Applicability of Special Procedure: The notification applies to taxable persons who were unable to file an appeal against an order within the time frame specified in section 107 of the CGST Act. It also includes those whose appeals were rejected solely due to a failure to meet the specified time limits.

Appeal Filing Deadline: Taxable persons falling under this category are required to file an appeal using Form GST APL-01. The appeal must be submitted on or before January 31, 2024.

Payment of Tax and Other Amounts: Before filing an appeal under this notification, the appellant must have paid the part of the amount of tax, interest, fine, fee, and penalty admitted by them in full. Additionally, they are required to pay a sum equal to twelve and a half percent of the remaining disputed tax amount from the impugned order, subject to a maximum of twenty-five crore rupees. At least twenty percent of this amount should be paid by debiting from the Electronic Cash Ledger.

No Refunds: The notification specifies that no refunds will be granted until the appeal is disposed of. This applies to any amount paid by the appellant, either on their own or on the directions of any authority or court, exceeding the amount specified in the notification.

Inadmissibility of Appeals for Non-Tax Demands: Appeals filed under this notification are not admissible in cases where the demand doesn’t involve tax, i.e., for non-tax-related issues.

Application of GST Rules: The provisions of Chapter XIII of the Central Goods and Services Tax Rules, 2017, apply mutatis mutandis to appeals filed under this notification.

Conclusion: The CBIC’s latest notification introduces a special appeal procedure for GST cases, providing relief to taxpayers who missed the appeal deadlines or had their appeals rejected solely on the grounds of timing. Taxpayers must ensure they meet the specified conditions and adhere to the outlined procedures for filing these appeals. This notification is a significant development in the GST framework, offering a structured approach to address issues related to appeal timelines and payments, ultimately facilitating smoother processes in the GST landscape.

Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi

Notification No. 53/2023– Central Tax | Dated: 2nd November, 2023

S.O. 4767(E).—In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies taxable persons who could not file an appeal against the order passed by the proper officer on or before the 31^st day of March, 2023 under section 73 or 74 of the said Act (hereinafter referred to as the said order), within the time period specified in sub-section (1) of section 107 read with sub-section (4) of section 107 of the said Act, and the taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in section 107, as the class of persons (hereinafter referred to as the said person) who shall follow the following special procedure for filing appeals in such cases:

2. The said person shall file an appeal against the said order in FORM GST APL-01 in accordance with sub­section (1) of Section 107 of the said Act, on or before 31^st day of January 2024:

Provided that an appeal against the said order filed in accordance with the provisions of section 107 of the said Act, and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification, if it fulfills the condition specified at para 3 below.

3. No appeal shall be filed under this notification, unless the appellant has paid-

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b) a sum equal to twelve and a half per cent. of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed, out of which at least twenty percent should have been paid by debiting from the Electronic Cash Ledger.

4. No refund shall be granted on account of this notification till the disposal of the appeal, in respect of any amount paid by the appellant, either on their own or on the directions of any authority (or) court, in excess of the amount specified in para 3 of this notification before the issuance of this notification, for filing an appeal under sub­section (1) of Section 107 of the said Act.

5. No appeal under this notification shall be admissible in respect of a demand not involving tax.

6. The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017 (12 of 2017), shall mutatis mutandis, apply to an appeal filed under this notification.

[F. No.CBIC-20001/10/2023-GST]

RAGHAVENDRA PAL SINGH, Director