One more chance for Appeal Filing under GST. Here is good news for all taxpayers who could not file an appeal within the allotted timeframe or whose appeal was denied because it was filed after the deadline in opposition to an order issued by the appropriate authority until March 31, 2023. Taxpayers may now appeal such demand orders to the Appellate Authority under the CBIC’s Amnesty Scheme, even after the deadline for doing so has passed.
The appropriate officer’s ruling was given on or before March 31, 2023, and taxpayers can now file an appeal in FORM GST APL-01 on the GST site by January 31, 2024, at the latest, according to an advisory released by the GSTN. Additionally, taxpayers are recommended to pay the Appellate Officer’s fees for considering their appeal under Notification No. 53/2023’s guidelines for appeal filing under GST.
Nonetheless, taxpayers who have already submitted an appeal but had it denied as time-barred in APL-02 by the appellate authority may resubmit the case. If taxpayers encounter any difficulties when resubmitting APL-01, they should file a ticket through the Grievance Redressal site.
Understanding Adjudication Orders
Taxpayers have another chance to Appeal Filing under GST. Section 73 of the CGST Act 2017 authorizes adjudication orders to be issued in cases involving unpaid taxes, underpaid taxes, incorrectly returned taxes, and input tax credits that are incorrectly obtained or used for purposes other than fraud or deliberate falsification or suppression of information. These orders deal with the resolution of these cases or show cause requests that do not accuse taxpayers of fraud or purposeful misrepresentation or omission of material information. On the other hand, Section 74 addresses the adjudication orders for tax determination in situations when taxpayers are accused of fraud, making false statements, or suppressing information.
Period of Appeal Filing under GST
The date of Appeal Filing under GST has been extended. Under Section 107 of the CGST Act, which states that any person aggrieved by any adjudication order issued under the GST Acts may appeal within three months of the date of transmission of said orders, an appeal against the aforementioned decisions passed under Sections 73 or 74 of the CGST Act, may be submitted.
According to Section 107(4), the Appellate Authority may provide an additional one month time if he determines that the appellant was prohibited from bringing the appeal within the previously specified three-month period for a valid reason.
Therefore, it can be observed that prior to the release of the Amnesty Scheme Notification dated November 2, 2023, a taxpayer who felt wronged by an order made under Section 73 or Section 74 of the CGST Act may file an appeal under Section 107(1), providing that the appeal is filed within three months of the date the orders were communicated. However, the Appellate Authority was able to exercise its discretion and provide the taxpayers an additional month to file their appeals in accordance with Section 107(4).
Amnesty Scheme for Appeal Filing under GST
Amnesty scheme for appeal Filing under GST under Notification No. 53/2023–CENTRAL TAX, dated November 2, 2023, states that taxpayers who were previously denied their appeals due to time-barred under Section 107 of the CGST Act, 2017 or who were unable to file an appeal for technical or administrative reasons may now do so until January 31, 2024, provided they meet the following requirements:
- In accordance with Section 73 or Section 74 of the CGST Act, 2017, the orders against which an appeal is to be brought must have been granted on or before March 31, 2023;
- Taxable persons must file an appeal as per Section 107(1) of the act by January 31, 2024, at the latest, using FORM GST APL-0;
- The Notice’s extended time restriction is also applicable to appeals that are ongoing before the Appellate Authority, in which case:
- The appellant has paid all or a portion of the taxes, interest, fine, and penalty that he has acknowledged or
- Payment of 12.5% of the contested tax amount, for a maximum of 25 crore rupees, is made; at least 20% of this sum needs to have come from the Electronic Cash Ledger.
- Until the appeal is resolved, no reimbursement in excess of the sum specified in (ii) above will be provided.
- Appeals that do not include a tax demand are not eligible for this amnesty program.
Recommendations of GST Council on Appeal Filing under GST
The recommendation of GST Council for appeal filing under GST is for taxable persons who were unable to file an appeal under section 107 of the CGST Act against the demand order under sections 73 or 74 of the CGST Act, 2017 passed on or before March 31, 2023, or whose appeal against the said order was denied solely because the appeal was not filed within the period specified under section 107(1) of the CGST Act, 2017, the Council recommended for providing an amnesty scheme through a special procedure under section 148 of the CGST Act, 2017 for taxable persons.
In all of these cases, taxpayers may file an appeal against these orders until January 31, 2024, provided they pay a pre-deposit equal to 12.5% of the tax in question, up to a maximum of 25 crore rupees, of which at least 20% (i.e., 2.5% of the tax in question) must be deducted from the Electronic Cash Ledger. Many taxpayers who previously were unable to file an appeal within the allotted time frame would benefit from this.
Recent Notification on Appeal Filing under GST
The GST council has recently issued a notification for appeal filing under GST. Here is good news for the taxpayers who could not file an appeal during the previously prescribed time limit or whose appeals were rejected as time-barred. Let’s look at the new notification:
- In carrying out the duties authorized by section 148 of the CGST Act, 2017, the Central Government, acting on the advice of the Council, hereby notifies the taxable persons who were not able to file an appeal within the time frame specified in sub-section (1) of section 107 read with sub-section (4) of section 107 of the said Act, and the taxable persons whose appeal against the said order was denied solely because the said appeal was not filed on time submitted within the time frame given in section 107, as the class of individuals (henceforth referred to as the said person) who, in such circumstances, should adhere to the specific procedure for submitting appeals as follows:
- The individual shall, on or before January 31, 2024, file an appeal against the said ruling in FORM GST APL-01 in compliance with sub-section (1) of Section 107 of the said Act:
Provided that an appeal against the aforementioned order that was filed in line with section 107 of the CGST Act and was pending before the Appellate Authority before the publication of this notification will be considered to have been filed in line with this notification if it satisfies the requirements.
- Subject to the following conditions being met, an appeal under this notification cannot be filed:
- The appellant must have paid in full the portion of the tax, interest, fine, fee, and penalty arising from the impugned order that he has admitted;
- The amount equal to 12.5 percent of the remaining tax in dispute arising from the said order, up to a maximum of 25 crore rupees, for which the appeal has been filed, at least 20 percent of which should have been paid by debiting from the Electronic Cash Ledger.
- Until the appeal is resolved, no reimbursement will be given for any money paid by the appellant, either independently or in response to a court’s ordersabove the sum mentioned in this notification, which was paid in advance of the notification’s issuance to file an appeal under subsection (1) of Section 107 of the CGST Act.
- A demand unrelated to taxes may not be the subject of an appeal under the terms of this announcement.
- An appeal submitted in accordance with this notification shall be subject to the requirements of Chapter XIII of the Central Goods and Service Tax Rules, 2017 (12 of 2017), mutatis mutandis.
Procedure to get Benefit of this Amnesty Scheme for Appeal Filing under GST
The amnesty scheme for appeals filed under GST gives taxpayers another chance to file appeals. For that, the taxpayers will have to follow a thorough procedure. Here is a process to be followed for appeal filing under GST:
- No appeal was submitted
Taxpayers now have until January 31, 2024, to file an appeal using FORM GST APL-01 on the GST portal about the order issued by the appropriate officer through March 31, 2023. Additionally, for appeal filing under GST, taxpayers are recommended to pay a 12.5% Pre-Deposit (up to a maximum of Rs. 25 crores), of which at least 20% (i.e., 2.5% of the tax in dispute) should be deducted from the Electronic Cash Ledger and the remaining 10% can be paid through the Electronic Credit Ledger. The GST Portal gives taxpayers the option to pick an electronic Credit/Cash ledger as their method of payment. The taxpayer must choose the right ledgers and make the proper Pre-Deposit payments.
Before considering an appeal, the Appellate Authority’s office will verify that the money was made correctly. If an appeal is submitted without the required pre-deposit, it may be handled in accordance with the law.
- In 90+30 days, an appeal has already been filed.
In accordance with Notification No. 53/2023, a taxpayer who has already filed an appeal and wishes it to be covered by the benefits of the amnesty plan must make differential payments of Pre-Deposit. The “Payment towards demand” feature on the GST site (Login >> Services >> Ledgers >> Payment towards Demand) should be used to make the payment against the demand order.
- Appeal previously submitted after 90+30 days but denied in APL-02 due to time-barred
Taxpayers who have previously submitted an appeal but had it denied by the Appellate Authority in APL-02 due to time barring may resubmit the petition. But if the taxpayers run into any problems when resubmitting APL-01, they should file a ticket via the Grievance Redressal Portal.
- After 90+30 days, an appeal was already filed, and an APL-04 rejection order was issued.
The taxpayer must contact the appropriate Appellate Authority office well in advance to meet the deadlines in the notification if the Appellate Authority has issued a Rejection Order in APL-04 because the appeal application is past due. After determining whether the taxpayer qualifies for the amnesty program, the appellate authority will transmit the matter to the GSTN via the State Nodal officer.
It’s also crucial to remember that neither GSTN nor the Grievance Redressal Portal would accept appeal filing under GST direct representations for cases issued under APL-04. Cases issued under APL 04 must be mandatorily sent to the State Nodal officer.
GSTN would allow the taxpayer to submit an appeal against the relevant ruling after obtaining the case from the State nodal officer.
How can Corpbiz help you with appeal filing under GST?
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The GST Amnesty Scheme for Appeal Filing under GST is a government initiative to provide relief to taxpayers with pending appeals under GST by offering a chance to resolve disputes by paying a reduced amount.
Taxpayers with pending appeals or whose appeals were rejected due to time bare related to GST before appellate authorities or courts as of a specified date are eligible for Appeal Filing under GST.
Under this scheme, eligible taxpayers can resolve their pending appeals by paying a reduced amount of tax, interest, or penalty as specified under the scheme.
All types of appeals pending before appellate authorities, such as Commissioner (Appeals), Appellate Authority for Advance Ruling, or courts, are covered under the GST Amnesty Scheme for Appeal Filing under GST.
Yes, the scheme has a specified period during which eligible taxpayers can apply. For orders passed on or before March 31, 2023, taxpayers may now file an appeal using FORM GST APL-01 on the GST portal by January 31, 2024.
In situations where arrears total less than Rs. 10,000, the GST Amnesty Scheme for 2022 permits the waiver of all arrears. Dealers who have arrears of at least Rs. 10 lakhs as of April 1, 2022, may choose to pay 20% of the entire amount owing in one single payment rather than having to factor in interest and penalties for appeal filing under GST.
It is possible to resubmit an appeal application after it has been denied in the admission stage. Go to the New Application page in order to submit the application. Enter the original application’s Order ID after selecting the Order type.
If a registered person’s registration has been cancelled by the appropriate authority, they may file an application for reversal of cancellation using form GST REG-21. A person 30 days from the day the cancellation order was served must submit it through the Common Portal.
Documents such as appeal reference numbers, details of the disputed amount, and other relevant records need to be submitted to the GST Amnesty Scheme for Appeal Filing under GST.
The GST Council has instituted an amnesty program that permits taxpayers to file appeals against demand orders issued by tax inspectors until March 2023, with the deadline being January 31, 2024. An increased pre-deposit requirement of 12.5% of the tax demand is also part of the proposal.
The taxpayer is required to file an application in the specified format along with the necessary documents to the concerned authority within the specified timeframe.
In its 52nd Council meeting, which took place in New Delhi on July 10, 2023, the GST Council approved an amnesty plan for submitting missed-out appeals. The Council also said that it was formally issued by the CBIC by Notification No. 53/2023 Central Tax dt. 02/11/2023.
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