The Joint Commissioner (Appeals), being the First Appellate Authority of Goods and Services Tax (GST) matters recently affirmed that no appeals may be entertained by the GST Appellate Authority if the appeal is not accompanied by a pre-deposit sum equal to ten percent of the “remaining amount of tax in dispute” arising from the order, regarding which the appeal has been filed.

The decision was given by the Appellate Authority while disposing of multiple appeals pertaining to eligibility to avail Income Tax Credit (ITC) according to Section 16(4) of the Central Goods and Services Act, 2017 (CGST Act) and retrospective extension of deadline by means of the newly inserted Section 16(5) of the CGST Act. Become a PF & ESIC expert with our comprehensive course – Enroll Now 121 Kerala-based business entities filed appeals under Section 107(1) of the CGST Act impugning Orders-in-Original passed by adjudicatory authorities of the GST Department. Majority of the Appellants were awarded opportunities of personal hearing under Section 107(8) of the CGST Act while some of them sought adjudication of their appeals without personal hearing.

The Joint Commissioner (Appeals), Ajitesh Radhakrishnan referenced the decision of the Division Bench of the Hon’ble Patna High Court in the case of M/s. Flipkart Internet Pvt. Ltd. Vs. State of Bihar (2023) where the High Court elucidated that pre-deposit for maintaining an appeal under Section 107(6)(b) of the GST Act shall be made solely by utilizing amounts from the e-Cash Ledger and not the e-Credit Ledger. Become a PF & ESIC expert with our comprehensive course – Enroll Now Read More: Interim Relief to Flipkart: Supreme Court stays Patna HC’s Rejection of GST Appeal for Pre-Deposit from ECRL instead of ECL, issues Notice Further, the CBIC referred to Corrigendum to Circular No. 237/31/2024-GST dated 15th October 2024which clarified that “restriction on refund under Section 150 of the Finance (No. 2) Act, 2024 will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer.” Observing that some of the appellants had brought about defective appeals owing to time-bar and lack of pre-deposit, the Joint Commissioner (Appeals) dismissed those appeals while appellants who had duly made the pre-deposit were granted relief by the CBIC.