No pre-deposit required for filing appeal before the GSTAT against penalty-only orders where proceedings commenced prior to October 01 2025

Last updated: 07 September 2026

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The GSTAT Hyderabad has ruled that appeals filed before the tribunal against penalty-only orders, where the initial proceedings began before October 1, 2025, do not require a pre-deposit. This is because the amendment introducing a 10% penalty pre-deposit requirement for such cases is prospective. The tribunal affirmed that the right to appeal is a vested right that cannot be retrospectively curtailed by new conditions.

Court :
GSTAT, Hyderabad Bench

Brief :
The GSTAT, Hyderabad Bench, in the case of M/s. Reddy Veeranna Constructions Pvt. Ltd. v. Appeal I Commissioner & Ors. [APL/623/HYD/2026 dated July 28, 2026] admitted the appeal without insisting upon payment of statutory pre-deposit under Section 112(8) of the Central Goods and Services Tax Act, 2017 ( “the CGST Act” ) and held that the proviso to Section 112(8) of the CGST Act, inserted vide the Finance Act, 2025 w.e.f. October 01, 2025, prescribing pre-deposit of ten percent of the penalty amount in cases involving demand of penalty only, is prospective in nature and cannot be applied to proceedings initiated before its coming into force, since the right of appeal is a substantive and vested right which accrues on the date of commencement of the lis and cannot be curtailed by a subsequently introduced pre-deposit condition.

Citation :
PL/623/HYD/2026 dated July 28, 2026

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Attached File : 671907_6112_1_reddy_veeranna_constructions_pvt_ltd.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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