Appeal Against GST Demand Order

Last updated : September 16th, 2024 05:09 pm

Appeal Against GST Demand Order

Taxes are the main source of revenue for the Government regardless of being Direct or Indirect. The provision for raising a demand order for the tax and recovering the same where it is paid in short, unpaid or incorrect utilisation of input tax credit has been stated in the GST Act. An appeal against a GST demand order may be filed if there is are any discrepancies found in the demand and recovery provisions initiated by the GST Department. In this article, we look at the procedure for filing an appeal against GST Demand Order (GST APL-01).

Eligibility

Any taxpayer having GST registration or unregistered individuals who are unsatisfied by any order or decision passed against them by an adjudicating authority may file an appeal with the Appellate Authority within three months from the date of when the resolution was given or the order is communicated to the individual. An appeal may be filed by the taxpayer or an unregistered individual only after the adjudicating authority passes an order.

Criteria for Filing Appeal

The other criteria to cross off while filing an appeal against demand order are as follows.

1. A minimum of 10% of the disputed tax must be paid as a pre-deposit before filing an appeal as per the law. Although, the competent authorities may amend this law by declaring a lower percentage for pre-deposit.
2. An applicant may file an appeal against a Demand Order through DSC or EVC. DSC is mandatory for all companies and LLPs to file an appeal against Demand Order.

Application to File an Appeal

Filing an appeal against a demand order has seven significant steps to be completed. The stages are as follows:

1. Creating an appeal to the Appellate Authority
2. Upload Annexure to GST APL-01
3. Disputed Payment Details
4. Pre-deposit money for the Appeal
5. Utilise cash/ITC
6. Submit other supporting documents
7. Review the Application and proceed to file

GST Portal Procedure

Creating Appeal to the Appellate Authority

Step 1: Visit the official GST webpage by clicking here.

Step 2: Login to the GST Portal with the appropriate credentials such as the User ID and Password.

Step 3: Select the Services option and choose the User Services option. Then, click on My Applications command.

Step 4: After the My Applications page is loaded, select the Application Type as Appeal to Appellate Authority from the drop-down menu.

Step 5: Click on the New Application icon.

The next page displayed would be the GST APL-01: Appeal to Appellate Authority.

Step 6: Select the Order Type as Demand Order from the options given.

Step 7: In the field given for Order Number, enter the Order Number allotted by the adjudicating authority.

Step 8: Click on the Search icon.

Step 9: The Order Details of the entered number is displayed.

Step 10: Choose the option accordingly from the Category of the case under dispute from the drop-down menu.

Step 11: Click on the Add icon.

Notes

Date of Communication and Period of Disputer that is displayed on the page may be edited accordingly. Multiple line items may be added from the Category of the case from the dispute drop down menu by clicking on the Add icon. By clicking the Delete icon, details that were added may be deleted.

• Upload Annexure to GST APL-01

Step 12: Select the Click here icon to download the Annexure to GST APL-01 Template.

Step 13: Open the downloaded template with Microsoft Word.

Step 14: Ensure editing is enabled by clicking on the Enable Editing icon on the top.

Step 15: Enter the necessary details mentioned in the template.

Step 16: Once all the required fields are completed precisely, save the file in the PDF format.

Step 17: Once the document is saved in the system as a PDF file, go back to the browser and click on the Choose File icon to upload the same. Only a file of the maximum size of 5 MB may be uploaded.

Step 18: Choose the file from the system that is required to be uploaded and click on the Upload tab. Once the PDF is uploaded, it may also be deleted by selecting the Delete option on the page.

• Disputed Payment Details

Step 19: Select the Disputed Amount/ Payment Details icon to enter the disputed amount and payment information.

Step 20: The Disputed Amount/ Payment Details page would be displayed next.

Step 21 (a): In the Amount under Dispute section, enter the amount that is under dispute. It should be noted that Amount under Dispute cannot be more than the Amount of Demand Created.

Step 21 (b): Scrolling will help to view the Total Amount under dispute.

Step 22 (a): The Amount of Demand that is created and admitted would be displayed in this section.

Step 22 (b): Use the scroll option to view the Total Amount of Demand created and submitted.

• Pre-Deposit of the Disputed Tax

Step 23: A pre-deposit of the disputed tax field will have 10 per cent of the disputed tax as a default value.

Note: A minimum of 10 per cent of the disputed amount must be paid as a pre-deposit before filing an appeal against a demand order. A lower percentage may be declared after a complete review from the competent authorities. Based on the rate finalised, the Details of the Payment Required, Details of the Payment of Admitted Amount and Pre-deposit, and Details of the amount payable towards the admitted amount and the pre-deposit sections are auto-populated.

• Utilise the Cash/ ITC

Step 24: Click on the Utilize ITC/ Cash icon.

Step 25: The Liability, Credit Ledger Balance and the Cash Ledger Balance details are displayed.

Step 26 (a):  The Liability as on date are displayed in the table below.

Step 26 (b):  The Cash Available as on date are displayed in the table below.

Step 26 (c):  Scroll to the right to enter the amount to be paid through cash against the liability.

Step 26 (d):  The ITC available as on date are displayed in the table below.

Step 26 (e):  Use the scroll to move to the right to enter the amount to be paid through ITC against the liability. Note that ITC can be adjusted against Tax Liability only.

Step 27: Once the amount and the necessary details are entered, click on the Set-Off icon.

Step 28: Click on the OK icon on the confirmation message that follows.

Step 29: A success message would be displayed next along with the Payment Reference Number. Click on the Back icon.

• Adding any Other Supporting Documents

Step 30: To upload additional supporting documents, enter the document description and select the Choose File option.

Note: Only four additional documents of 5 MB each and PDF or JPEG file is allowed to be uploaded. The rest of the other materials may be handed over in hard copy.

Step 31: Select the Add Document icon and choose the documents from the system to upload and add the supporting documents. The selected records may be deleted by clicking on the Delete tab on the same page.

• Review the application and proceed to file

Step 32: To preview the Application before submission and filing, select the Preview icon.

Step 33: The PDF version of the file will be downloaded, and the same may be reviewed to check if all the details are updated correctly.

Step 34: Select the Name of the Authorised Signatory from the drop-down menu.

Step 35: Enter the name of the Place where the application is filed in the Place field.

Step 36: Select the Proceed to File icon.

Step 37: Click on the Proceed icon.

Step 38: Click on the option to Submit with DSC or Submit with EVC icon.

To Submit with DSC, select the appropriate certificate from the system and click on the Sign icon.

To Submit with EVC, enter the OTP sent on the registered email address and mobile number of the Authorized Signatory at the GST Portal and click on the Verify icon.

Step 39: A confirmation message regarding the signature will be displayed on the next page. Click on the Download icon to download the acknowledgement receipt.

Once the Appeal against the Demand Order is filed correctly, an email and SMS would be sent to the Taxpayer or an Unregistered User accordingly and the Appellate Authority.

Types of Appeal Statuses

The following statuses are displayed for the respective situations.

Late Filing GST Appeal

The appellate authority may condone delay for a period of a maximum of 1 month if satisfied that the taxpayer was not able to present an appeal within the mentioned period of three months and would allow it to be submitted within one month after the expiry date of filing appeal under reasonable causes.

Final Acknowledgement 

When an appeal is filed against a demand order, a notification in the form of an email or text message would be sent to the taxpayer or unregistered person and the Appellate Authority. When an electronic filing of the Appeal is done, the appropriate documents, as well as the verification part of the Appeal, has to be submitted to the Appellate Authority with seven days from the electronic filing. The appeal documents are verified, and a final acknowledgement is issued if all the records are intact. The appeal is considered to be successfully filed only when appeal number is allotted with the final statement.