The first appeal under Section 107 of the CGST Act is the taxpayer's primary remedy against an adverse assessment or demand order. Understanding the time limit, pre-deposit requirements, and procedure is essential for any taxpayer contemplating an appeal.
This article explains the Section 107 appeal process in detail.
Time Limit
The appeal must be filed within three months from the date of communication of the order. The Appellate Authority can condone a further delay of one month on sufficient cause being shown. After 120 days, the appeal is time-barred.
Pre-Deposit Requirement
The appellant must pay:
- Admitted tax, interest, fine, and penalty: Full amount.
- Disputed tax: 10% as pre-deposit, subject to the statutory ceiling.
The pre-deposit can be paid using the electronic cash ledger or electronic credit ledger. The Gujarat High Court has held that pre-deposit under Section 107(6) is accompanied by automatic stay of recovery under Section 107(7).
Changes Under Finance (No. 2) Act, 2024
Effective from 1st October 2025, Sections 107 and 112 were amended to prescribe pre-deposit even in cases where only a penalty is demanded.
Procedure
- File Form GST APL-01 on the GST portal.
- Upload the order, grounds of appeal, and supporting documents.
- Pay the pre-deposit.
- The Appellate Authority may grant a personal hearing.
- The appeal must be decided within one year.
Practical Tips
- Calculate the pre-deposit accurately before filing.
- File within the three-month period; do not rely on the one-month extension.
- Consider the automatic stay benefit.
- Engage professional representation for complex appeals.
Conclusion
The first appeal under Section 107 is the most important appellate remedy. Strict timelines and accurate pre-deposit calculation are essential. Taxpayers should engage professional advice early.
At Anuj Desai & Associates, we provide expert representation services for first appeals under Section 107. Our team can help you prepare and file a strong appeal.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.