The Central Board of Indirect Taxes and Customs (CBIC), through Notification No. 20/2024 – Central Tax dated October 8, 2024, has introduced a significant amendment to the pre-deposit requirements for filing appeals under the Goods and Services Tax (GST) framework. This change, effective from November 1, 2024, is aimed at easing the financial burden on businesses involved in GST disputes.
Key Amendments in Rules 108(1) and 110(1) of the CGST Act
- Reduction in Pre-Deposit Limit:
- The pre-deposit requirement has been reduced to 10% of the disputed tax or cess for filing appeals.
- Caps on pre-deposit amounts have been lowered:
- For CGST, SGST, and cess, the cap is now Rs. 20 crore.
- For IGST, the cap has been reduced to Rs. 40 crore.
- This amendment is reflected in Form GST APL-01 and Form GST APL-05.
Details of the Amendments
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Form GST APL-01:
- Entry No. 15 has been updated to reflect the reduced pre-deposit amounts.
- The earlier limit of Rs. 25 crore for CGST, SGST, and cess has been substituted with a new cap of Rs. 20 crore each.
- For IGST, the limit has been reduced from Rs. 50 crore to Rs. 40 crore.
-
Form GST APL-05:
- Similar reductions have been made, aligning the pre-deposit limits with those in Form GST APL-01.
- The cap for CGST, SGST, and cess is now Rs. 20 crore, while for IGST, it is Rs. 40 crore.
Impact of the Amendment
The lowering of pre-deposit requirements will help businesses, especially those involved in high-value disputes, by reducing the immediate financial outflow required to file appeals. This move is expected to ease working capital pressures and improve liquidity for taxpayers.
Official copy of the notification has been attached
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