Monetary Thresholds for Government Appeals in Tax Litigation Act

Last updated: 27 June 2024

Notice Date : 26 June 2024

Quick Summary

The Central Board of Indirect Taxes and Customs (CBIC) has announced a reduction in the monetary thresholds for government appeals in tax litigation. This move aligns with the National Litigation Policy, aiming to optimise judicial resources and speed up case resolutions. Appeals will now have specific minimum amounts to be considered, and cases with established precedents will generally not be pursued further.

F. No. CBIC-20001/4/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
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North Block, New Delhi,
Dated the 26th June 2024

To,
The Principal Chief Commissioners / Chief Commissioners /
Principal Commissioners /Commissioners of Central Tax (All)
The Principal Directors General/ Directors General of Central Tax (All)

Madam/Sir,

Subject: Reduction of Government Litigation – fixing monetary limits for filing appeals or applications by the Department before GSTAT, High Courts and Supreme Court -reg.

Reference is invited to the National Litigation Policy which was conceived with the aim of optimizing the utilization of judicial resources and expediting the resolution of pending cases. It underscores the importance of prudent litigation practices by establishing thresholds for filing appeals in Revenue matters. Specifically, the Policy mandates that appeals should not be pursued when the amount involved is below a specified monetary limit set by Revenue authorities. Furthermore, it discourages filing appeals in cases where established precedents from Tribunals and High Courts have settled the matter and have not been contested in the Supreme Court.

1.1 Section 120 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as “the CGST Act”) provides for power to the the Central Board of Indirect Taxes & Customs (hereinafter referred to as “the Board”) for fixing the monetary limits for filing of appeal or application by the tax authorities as below:

For full notification please refer to the attachment

FAQ :

The notification aims to reduce government litigation by setting new monetary limits for filing appeals and applications before the GSTAT, High Courts, and Supreme Court, in line with the National Litigation Policy.

The new monetary limits apply to appeals and applications filed by the Department before the GSTAT, High Courts, and the Supreme Court.

The National Litigation Policy is a framework designed to optimise the use of judicial resources and expedite the resolution of pending cases through prudent litigation practices.

The Central Board of Indirect Taxes & Customs (CBIC) has the power to fix these monetary limits under Section 120 of the Central Goods and Services Tax Act, 2017.

Yes, the policy also discourages filing appeals in cases where established precedents from Tribunals and High Courts have already settled the matter and have not been contested in the Supreme Court.