GST Appeal: What Taxpayers Should Know About Appeals to First Appellate Authority
Updated: Aug 28
If the GST officer thinks the taxpayer owes any taxes under the GST Act, the taxpayer will get a written notification through the appropriate channels called a demand order. This formal notice is sent to the taxpayer by the GST officer if there is an outstanding tax liability. Within three months of receiving the notice, the taxpayer—whether or not they are registered under GST—may file an appeal against such an order. The process for filing an appeal against a demand order and the processes involved in responding to the demand order will be discussed in this article.
Table of Contents:
Appeal to First Appellate Authority
When an adjudicating court issues an order that dissatisfies a person or taxpayer, they have three months—which can be extended by one month—to file an appeal using form APL-01. Along with it must be the reasons for the appeal and a verification form that the appellant has properly signed. Additionally, the order that is the subject of the appeal must be uploaded to the GST portal, and the authority is required to issue an acknowledgement in APL-02 along with the appeal number. The date of the appellate authority's provisional recognition is the date of the appeal in this case. The maximum pre-deposit amount for filing an appeal before appellate authorities should be lowered from Rs. 25 crore under CGST and SGST/UTGST to Rs. 20 crore under each of these taxes, following the recommendations made at the 53rd GST Council meeting.
However, if the appellant fails to submit the order copy that the appeal is preferred against, they will need to produce a self-certified copy of the order within seven days following the APL-01 filing date. The authority issues Form APL-02 along with the appeal number. The date of the provisional acknowledgement's issuance is also the appeal date in this case. The date of filing the appeal will be the date on which the self-certified copy of the order is submitted, provided that it is not submitted within seven days of filing the APL-01. As soon as the application is filed, the authority grants a provisional acknowledgement. But only when the final acknowledgement bears the appeal number is the appeal considered filed.
Appeal by the Commissioner to the First Appellate Authority
Under Rule 109 and Section 107(2), an appeal may be lodged. The Commission has six months from the date of the order in form APL-03 to file an appeal with the appellate authority. The determination of the appeal date will follow the guidelines outlined in Rule 108 above. After reviewing the appellant's motion or the Commissioner's request, the officer will review the order's record to determine if it is appropriate or lawful. After that, within six months of the order's date, the Commissioner may instruct his subordinate officer to file an application with the First Appellate Authority. An appeal against the order will be considered if the authorised officer files an application with the First Appellate Authority. The appeal number in form APL-02 and a final recognition will be sent by the Appellate Authority.
Powers of the First Appellate Authority
For taxpayers looking for an equitable and efficient resolution to tax concerns, it is imperative that they comprehend the nuances of the GST appeals process, including filing requirements and crucial procedural steps. Within the GST system, a smooth and fair appeals procedure is largely attributed to timeliness, comprehensive documentation, and adherence to procedural rules. Within the framework of the Goods and Services Tax (GST), the First Appellate Authority (FAA) plays a crucial function as an adjudicating body in the appeals process. Examining the authority and duties of the Federal Aviation Administration is crucial for taxpayers who want to challenge decisions made by subordinate organisations. This is a thorough analysis of the First Appellate Authority's duties and authority under the GST:
Independent adjudication: The FAA functions as an independent adjudicating body and was appointed under the GST framework. For the appeals process to be objective and equitable, autonomy is essential. The authority is independent of the original adjudicating authorities and exercises quasi-judicial functions.
Authority for Appeals: The main duty of the FAA is to hear appeals from taxpayers who are unhappy with rulings or directives from subordinate agencies, including the Assessing Officer or the Commissioner of GST. After reviewing these appeals, the authority renders a fair and impartial decision.
Review of Factual and Legal Aspects: The Federal Aviation Administration (FAA) is vested with the jurisdiction to examine the factual and legal aspects of a case. This entails a careful analysis of the relevant legal requirements and a comprehensive assessment of the information that the appellant has provided. The decision-making body makes sure that all parties have a clear understanding before acting.
Decision-Making Autonomy: Operating in a quasi-judicial role, the FAA has decision-making authority. Based on the merits of the case, the law, and the ideas of natural justice, it is within its discretion to uphold, alter, or reverse the rulings of subordinate authority.
Hearing Appeals: Holding hearings for the appeals that are submitted to the FAA is one of its primary responsibilities. Appellants have the chance to make their case, offer further details, and answer questions from the authorities during these hearings. Throughout these processes, the natural justice standards are strictly adhered to.
Issuing Well-Informed Directives: The FAA issues well-reasoned orders after hearings and review of the appeal. These orders give the reasoning behind the decision, list pertinent legal provisions, and summarise the conclusions on each ground of appeal. Transparency and comprehension depend on the issuing of detailed and unambiguous orders.
Decision Implementation: The relevant tax authorities carry out the decision after the FAA delivers its final order. This could entail taking steps like modifying tax obligations, returning overpaid taxes, or making other required changes to the FAA's guidelines.
Navigating the GST appeals procedure requires both tax practitioners and taxpayers to have a thorough understanding of the authority's powers and duties. Effectiveness and equity in the GST dispute resolution process are greatly enhanced by the authority's dedication to impartial adjudication, prompt resolution, and the issue of well-reasoned rulings.
Decision of First Appellate Authority
The First Appellate Authority will not send the matter back to the original authority, but it may validate, amend, or revoke the ruling. Adverse effects of the order Any order that increases fees, penalties, or fines, seizes things of greater value, reduces refunds, or reduces input tax credits shall only be approved after a reasonable chance to provide justification. Only when the appellant is served with a show-cause notice will any order for the payment of unpaid or underpaid taxes, incorrect refunds, or incorrectly obtained input tax credit be implemented. Furthermore, 25% of the penalty for filing an appeal under section 107 of the CGST Act must be paid with regard to orders received on the detention and seizure of goods and conveyance.
Within a year of the appeal's filing date, the order must be approved. The duration of any delay imposed by a court or tribunal order will not count against the one-year limit. The appellant and the adjudicating authority will be informed of the order passed by the First Appellate Authority. Additionally, a copy of the order will be forwarded to the CGST and SGST jurisdictional commissioners.
Revisional Authority
The Revisional Authority may review any proceeding's records independently or upon request from the Commissioner of SGST/CGST. If he believes that any judgement made by a junior officer is— he will review the documents.
Detrimental to the revenue's interest
Unlawful or
Inappropriate or
Not accounting for certain factors (whether or not available at the time the order was issued) or
One finding was reported by the C&AG
He may, if he sees fit, stay the order for however long he feels is necessary. There will be a chance for the individual in question to be heard.
Non-Admissibility of a Revision
The order won't be changed by the Chief Commissioner or Commissioner if:
An appeal has already been filed against the order.
There is still time for an appeal because six months have not elapsed since the date of the order.
Over three years have elapsed since the order date.
The correction order has already been placed.
A Commissioner or the Chief Commissioner may issue an order regarding any matter that hasn't been brought up in an appeal. Such an order shall be issued no later than one year or no later than three years from the date of the appeal order. The duration of the stay will not apply if a court or tribunal orders that the order be stayed. The person who was wronged has the option to appeal to the National Appellate Tribunal, the High Court, and ultimately the Supreme Court if he is unhappy with the First Appellate Authority's ruling.
Conclusion
In India's Goods and Services Tax (GST) system, legal counsel is essential to the procedures before the First Appellate Authority (FAA). A thorough grasp of legal nuances and procedural difficulties is essential for navigating the complexities of tax laws and making a strong case before the FAA. Using legal counsel increases the likelihood of a successful result and supports the values of justice and equity in the GST adjudication process.
FAQ
Q1. Who is the first appellate authority in GST?
Under the GST regime, an appellate body called the First Appellate Authority was created to consider appeals against rulings made by subordinate bodies. The FAA has the authority to make orders in this regard and to consider appeals against the GST authorities' rulings.
Q2. What is the main role of the FAA in GST?
The FAA's main job is to hear appeals from taxpayers who are unhappy with rulings from subordinate tax authorities and to deliver a fair and unbiased conclusion.
Q3. Why is the FAA considered quasi-judicial?
The FAA is referred to as quasi-judicial since it exercises authority similar to that of a judicial body, guaranteeing objectivity and conformity to the law while issuing decisions.
Q4. What typically constitutes the composition of the FAA?
The FAA is often composed of a varied group of members, including technical and legal specialists, and a selected person who serves as the authority's head.
Q5. Can appellants seek legal representation before the FAA?
Yes, appellants have the right to retain counsel, which enables them to build a thorough and well-rounded case throughout the appeals process.
Q6. What are the fees for GST appeal?
The Appellate Tribunal charges a filing fee, and each applicant must pay the entire amount due, which includes the initial order's tax, fine, interest, and penalty. If there is any dispute, then the applicant has to pay 20% of the amount as the GST appeal fees.
Q7. Who is the highest authority under GST for appeals?
On significant legal issues, an appeal from a State Bench decision will go to the jurisdictional High Court, whereas an appeal from a National Bench decision will go directly to the Supreme Court.
Q8. Who is eligible to file a GST appeal?
An individual may file an appeal with the First Appellate Authority if they are dissatisfied with any ruling or order made under GST against them by an adjudicating authority. If they disagree with the First Appellate Authority's decision, they have the right to file an appeal with the National Appellate Tribunal, the High Court, and finally the Supreme Court.
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