GST Council: Max amount for Filing of Appeal shall be Reduced from Rs 25 crore to Rs 20 crore, says FM

In the 53rd GST council meeting, the FM said that the maximum amount for filing the appeal shall be reduced from Rs 25 crore to Rs 20 crore CGST pre-deposit to file the appeal before the appellate authority.   The Finance Minister Nirmala Sitaraman presided over the 53rd meeting of the GST Council today (22nd June 2024) at New Delhi with Revenue Secretary and CBIC Chairman. The council recommended an amendment in Section 107 and Section 112 of the CGST Act to reduce the amount of pre-deposit required to be paid for filing of appeals under GST. The GST Council recommended reducing the amount of pre-deposit for filing of appeals under GST to ease cash flow and working capital blockage for the taxpayers. The maximum amount for filing an appeal with the appellate authority has been reduced from Rs. 25 crores CGST and Rs. 25 crores SGST to Rs. 20 crores CGST and Rs. 20 crores SGST. Section 107 provides the legal framework for taxpayers to appeal against certain orders passed under the GST law. These orders could relate to decisions made by lower GST authorities, such as tax officers or adjudicating authorities. The appeals under Section 107 can be filed before two levels of appellate authorities: First Appellate Authority: This is usually the Commissioner (Appeals) appointed under the CGST Act or an officer authorized by the Commissioner. Second Appellate Authority: This refers to the GST Appellate Tribunal established under the law. If a party is aggrieved by the decision of the Appellate Tribunal, they have the option to appeal further to the High Court and eventually to the Supreme Court of India, based on the nature and amount of the dispute. Section 107 of the CGST Act ensures a structured approach for taxpayers to seek redressal against adverse decisions under the GST regime, thereby providing a mechanism for fair and impartial resolution of disputes. The Council further gives a recommendation on  the amount of pre-deposit for filing appeal with the Appellate Tribunal has been reduced from 20% with a maximum amount of Rs. 50 crores CGST and Rs. 50 crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.

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