Time Limit for Filing GST Appeals to Commissioner Appeals & manner of calculation

Introduction

Under the Goods and Services Tax (GST) regime, the timely filing of appeals is critical for ensuring access to appellate remedies. Section 107 of the Central Goods and Services Tax Act, 2017, lays down the time limit for filing appeals before the First Appellate Authority. However, multiple interpretations—particularly on whether the time should be counted as calendar months (3+1 Months) or fixed days (90+30 days)—have caused confusion.

This article demystifies the correct legal position with reference to statutory provisions and key judicial rulings, including the latest judgment in Shri Ram Ply Product v. Additional Commissioner Grade 2, State Tax [(2023) 151 taxmann.com 282 (Allahabad HC)].

Legal Provision: Section 107 of CGST Act, 2017

Section 107(1) and 107(4) state:

– Appeals should be filed within three months from the date of communication of the adjudication order.

– A further one-month extension is permitted on showing sufficient cause, totaling four months.

Interpretation of “Month” – 90/30 Days or Calendar Months?

The law does not define “month” as 30 days. Hence, the meaning is derived from Section 3(35) of the General Clauses Act, 1897, which defines “month” as a calendar month (i.e., based on the Gregorian calendar).

Example: If an order is communicated on 30th November, the three-month period ends on 28th/29th February, not on the 90th day. The one-month condonable period extends this to 31st March.

Judicial Precedents Affirming Calendar Month Interpretation

1. Shri Ram Ply Product v. Additional Commissioner (Allahabad HC, 2023)

2. Patna HC – Brand Protection Services Pvt. Ltd. v. State of Bihar (2024)

3. Kerala HC – N.N. Steel Trading Co. v. JC (Appeals) (2024)=

4.  Madras HC – Tvl. S.V. Technick (2024)

Exclusion of Dates for Counting Limitation

1. Exclusion of Service Date

The date on which the order was served must be excluded when computing the period of limitation for an appeal. For instance, if an order was served on 26th June 2023, this date is excluded from the 3 Months limitation period for filing an appeal.

Case Reference: ROTOMAC GLOBAL PVT. LTD. v. Commissioner, Central Excise – Allahabad (2015)

2. Supreme Court Orders during COVID-19

The Supreme Court, in Suo Motu W.P. (Civil) No.3/2020 dated 23rd March 2020, directed exclusion of the period from 15th March 2020 in computing limitation. This was reaffirmed in Deepayan Mohanty vs Cargill India Pvt. Ltd. (Delhi, 2022), extending the exclusion to even the condonable delay period.

3. General Clauses Act

Section 9 of the General Clauses Act stipulates that the day from which a period is to be reckoned shall be excluded. This principle applies across all Central Acts unless expressly stated otherwise.

Case Reference: Jai Durga Enterprises v. UOI – Delhi (2021)

4. Limitation Act, 1963

Section 12 of the Limitation Act states that the day from which the period is to be reckoned shall be excluded. This rule applies to suits, appeals, and applications.

Case References

– Dr. S. Magalingam v. A. Ganesan (2006)

– S. Rajanikanth v. C. Thirumagal, Madras (2011)

Computation of Limitation Period

Key Principles:

Other Relevant Legal Developments

– Gujarat HC – Gujarat State Petronet Ltd. v. UOI (2021): Limitation begins only when the order is uploaded on GST portal.

– Condonation of Delay: Can only be allowed up to 1 month beyond the 3-month period (Section 107(4)).

– Wrong Forum Filing: Delay condonable if appeal was bona fide filed in the wrong forum.

Practical Guidelines for Professionals and Taxpayers

For Professionals:

– Track exact date of communication of the order.

– Apply calendar month calculation, not fixed days.

– Maintain a limitation register for each case.

– File condonation application with proper affidavit and grounds.

For Taxpayers:

– Share order copy and service details immediately.

– Comply with pre-deposit (10%) before filing appeal.

– Respond promptly to notices for delay explanation.

Conclusion

The law is settled—the time limit under Section 107 must be computed as calendar months, not fixed 90+30 days. Authorities dismissing appeals based on such rigid interpretation are not only violating the statute but also judicial discipline. Courts have consistently upheld that calendar months must be used, aligning with Section 3(35) of the General Clauses Act.

Thus, timely and correct filing of GST appeals depends on:

– Knowing the exact date of communication

– Computing using calendar months

– Understanding and applying relevant exclusions

Where delays occur, genuine grounds supported by precedents may be used to seek condonation.

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Prepared by: Ankur Jindal, Chartered Accountant | Partner-S A H A G and Associates, 394, Ashok Marg, Roorkee-247667 | Email. ankur1405@gmail.com |M No 8006300051

Disclaimer: The views expressed are personal and for educational purposes only.