Section 107 Appeal to Appellate Authority

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This discussion clarifies the pre-deposit requirement for appeals under Section 107 of the GST Act. When appealing a higher tax rate charge, the pre-deposit is calculated as 10% of the disputed tax amount, not the entire tax determined at the incorrect higher rate. The Appellate Authority must decide the appeal within a year and cannot remand it. Appeals must be filed within three months, with a potential one-month extension for delays.

Sakshi Dokania

Sakshi Dokania (Querist)

28 January 2024 Query regarding pre-deposit for appeal u/s 107

Appellant has been charged with tax rate higher than what is applicable i.e., 12% instead of 5% u/s 73 of the GST Act
Turnover being 20 cr.

What shall be the amount admitted?

20 cr @ 5%
OR
The entire amount to be disputed as the tax rate charged is higher than the applicable rate?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

28 January 2024 12.5% on tax payable (2.5% I. form of cash)

Sakshi Dokania

Sakshi Dokania (Querist)

28 January 2024 Hi Mam, thanks for the reply
This appeal does not belong to appeal under amnesty scheme.
U/s 107 we are required to pre-deposit 10% of the disputed amount, just wanted to know whether any of the amount shall be entered as admitted amount
OR
the entire tax amount determined @12% (higher rate) will be the disputed amount and the client has to pay 10% on such disputed amount as pre-deposit?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

28 January 2024 10% of disputed tax only.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

17 August 2025 Here’s a detailed breakdown to strengthen your response:
** ⏳ Timeline & Condone Delay**
Appeal must be filed within 3 months from communication of the order.
A further 1-month extension can be granted, subject to sufficient cause.
** Pre-Deposit Requirement**
Appellant must pay the admitted tax/interest/penalty in full, plus 10% of the disputed tax, capped at ₹20 crore.
This pre-deposit automatically stays recovery proceedings.
** Filing Process**
Use FORM GST APL-01 to file the appeal; acknowledgement (FORM GST APL-02) confirms the appeal is officially filed.
** No Remand Rule**
The Appellate Authority must decide the appeal and cannot remand it back to the adjudicating officer.
** ⏱ Decision Timeline**
Appeals should ideally be decided within one year. Extensions are allowed for complex cases.
** Condonation Beyond Four Months**
Courts have generally held that appeals filed beyond the 4-month limit are not admissible, positioning GST as a self-contained remedial framework.
However, writs can still be pursued under exceptional circumstances (e.g., denial of natural justice).

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