Karnataka now has an operational GST Appellate Tribunal with two State Benches at Bengaluru, and second appeals (APL‑05) lie against both CGST and KGST orders passed by the FAA/Revision Authority.
Tribunal status and jurisdiction:
- The Central Government has established GSTAT (including State Benches) with effect from 01‑09‑2023, and Karnataka has been allotted two State Benches at Bengaluru.
- Karnataka Finance Department’s 16‑10‑2024 notification recognises GSTAT as the second appellate authority for both CGST and KGST orders, meaning one common appeal covers the CGST + KGST components.
- Section 112 makes orders under section 107 (FAA) and 108 (revision) appealable to GSTAT, irrespective of whether the order is under Central or State GST, so your single APL‑05 will mention CGST and KGST break‑up in separate columns.
Time limits and recent limitation change:
- Section 112(1) prescribes 3 months for assessee appeals and 6 months for department appeals from the date of communication of the FAA/RA order, with a further condonable delay of 3 months.
- After the 2024 amendment, for orders passed when GSTAT was not functional, the limitation runs from the later of (a) date of communication of FAA order, or (b) Government‑notified date for filing appeals; thus, many older orders can still be appealed up to the notified outer date.
- For such “gap period” orders, always plead in your grounds that the appeal is within limitation by virtue of the amended proviso to section 112(1) and seek condonation in the alternative under section 112(6).
Pre‑deposit, fee and other charges:
- Pre‑deposit: APL‑05 and rule 110 require 20% of the remaining disputed tax/cess (over and above the 10% already paid at FAA stage) subject to caps: Rs. 50 crore each for CGST, SGST, cess and Rs. 100 crores for IGST.
- The admitted amount and pre‑deposit are paid only through the GST portal using normal challans (DRC‑03 etc.), and the challan numbers are entered in item 14 of APL‑05.
- Appeal fee (court fee) under rule 110: Rs. 1,000 for every Rs. 1,00,000 of tax/ITC/fine/penalty in dispute, capped at Rs. 25,000 per appeal; where no tax/ITC/fine/penalty is in dispute, a flat Rs. 500 applies.
- Tribunal fee is generally paid through the GSTAT portal (integrated Bharatkosh/e‑payment) and proof is uploaded in APL‑05, then annexed in physical paper books; separate smaller charges (inspection, certified copies) follow the Tribunal schedule of fees.
Filing APL‑05 and uploading documents:
- APL‑05 is the prescribed statutory form for appeals to GSTAT under rule 110(1), used across India including Karnataka.
- Filing steps in practice:
- Log into GST/GSTAT e‑filing portal → select Appeal to Appellate Tribunal (Form APL‑05).
- Auto‑pick GSTIN, appellant details; select correct Bench: Karnataka State Bench, Bengaluru (as per place of supply/FAA jurisdiction).
- Enter basic order details (FAA order number, date, section, OIO/DRC‑07 reference, amounts).
- Fill statement of facts and grounds boxes or indicate that a detailed note is attached as PDF.
- In the attachments section, upload PDFs of orders, challans, paper‑book annexures within the size and file count limits prescribed on the portal.
- Submit APL‑05 → system generates an acknowledgment/ARN, which must be printed and placed in all physical sets.
Number of sets and list of documents
- Rule 110 read with Tribunal practice requires a certified copy of the order appealed against to be filed, and Tribunal procedure notes generally insist on five sets (quintuplicate) of the appeal and annexures for the Bench.
- A typical Karnataka GSTAT appeal set (each of the 5 sets identical) would contain:
- Printout of APL‑05 as finally filed, duly signed and verified.
- Certified/self‑certified copy of FAA order (APL‑01 order) and copy of original OIO/DRC‑07/DRC‑09.
- Proof of 10% FAA‑stage pre‑deposit and additional 20% GSTAT pre‑deposit challans, plus challans for admitted dues.
- Proof of Tribunal fee payment (GSTAT/Bharatkosh receipt).
- Detailed Statement of Facts (if not fully typed into APL‑05).
- Detailed Grounds of Appeal and Prayer, with case law if needed.
- Copies of key evidence relied upon (returns, e‑way bills, books extracts, correspondence, inspection reports, etc.) arranged as annexures with index and page numbering.
- Documents are normally self‑certified as “True copy” by the appellant/authorised representative, except where the Tribunal insists on a certified copy of the impugned order; this is consistent with general GSTAT guidance.
Draft structure: APL‑05 narrative (facts and grounds):
Below is a generic English draft you can adapt for the “Statement of Facts” and “Grounds of Appeal” boxes/annexure in APL‑05 for a Karnataka matter (both CGST and KGST components).
Draft – Statement of Facts (for APL‑05 / Annexure):
1. The appellant is a registered taxable person under the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017, engaged in the business of __________, holding GSTIN __________ and operating from __________, Karnataka.
2. A show cause notice dated __________ was issued by the __________ (proper officer) proposing demand of tax, interest and penalty on various grounds, inter alia alleging __________.
3. After considering the reply and submissions, the adjudicating authority passed Order‑in‑Original No. __________ dated __________, confirming a demand of Central tax of Rs. __________, State tax of Rs. __________, interest and penalty under sections __________ of the CGST/KGST Acts.
4. Aggrieved by the said order, the appellant preferred a first appeal under section 107 before the Joint/Additional Commissioner of Commercial Taxes (Appeals), __________, Mysuru/Bengaluru, in Form GST APL‑01, along with the mandatory pre‑deposit of 10% of the disputed tax.
5. The First Appellate Authority, vide Order‑in‑Appeal No. __________ dated __________, partly allowed/wholly rejected the appeal, sustaining a net demand of Central tax of Rs. __________ and State tax of Rs. __________, together with interest and penalty, giving rise to the present second appeal.
6. The appellant is aggrieved by the impugned Order‑in‑Appeal to the extent it confirms the said demands and penalties, as the same are contrary to law, facts and evidence on record, and is therefore filing the present appeal under section 112 before this Hon’ble Goods and Services Tax Appellate Tribunal, Karnataka State Bench, Bengaluru.
7. The appeal is filed within the period of limitation as prescribed under section 112(1) of the CGST/KGST Acts, read with the amended proviso and the notified date for filing appeals where the Tribunal was previously non‑functional, and, without prejudice, any delay, if computed otherwise, deserves to be condoned in the interest of substantial justice.
Draft – Grounds of Appeal (illustrative headings):
Ground No. 1 – Limitation and maintainability
Ground No. 2 – Incorrect appreciation of facts and evidence
Ground No. 3 – Misinterpretation of section(s) ____ regarding taxability / ITC
Ground No. 4 – Penalty not sustainable in absence of mens rea / wilful misstatement
Ground No. 5 – Violations of principles of natural justice (if any)
Ground No. 6 – Excessive and unwarranted demand despite full disclosure and payment through banking channels
You can expand each ground into detailed paragraphs for the annexure, using your case‑specific facts, audit/inspection dates, and case law.
Applicability to CGST vs KGST orders:
- Section 109 and 112 treat GSTAT as a common Tribunal for both Central and State GST; hence, a single appeal covers CGST and KGST components of the same order.
- Karnataka’s notification expressly recognises GSTAT as the second appellate authority under the Karnataka GST Act as well, so you do not file separate appeals for Central and State; you simply disclose tax, interest, penalty separately in the APL‑05 columns for Central tax and State tax.
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