How do I appeal against a GST demand order passed by the department

Question

The GST officer passed an order confirming a tax demand against my business and I want to challenge it before a higher authority. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

How do I appeal against a GST demand order passed by the department is governed in India primarily by Central Goods and Services Tax Act, 2017, Section 107, Central Goods and Services Tax Act, 2017, Section 112 and Central Goods and Services Tax Act, 2017. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Section 107 of the CGST Act, 2017 allows any person aggrieved by an order passed by an adjudicating authority to file an appeal before the Appellate Authority within three months of communication of the order, extendable by a further one month if sufficient cause for the delay is shown, and the appeal must be filed electronically in the prescribed form along with a copy of the order appealed against.

A mandatory pre-deposit is required to file the appeal, generally a specified percentage of the disputed tax amount admitted plus a further percentage of the remaining disputed tax, and payment of this pre-deposit through the electronic cash or credit ledger, as applicable, stays recovery of the balance disputed amount pending disposal of the appeal.

If the appeal before the Appellate Authority is unsuccessful, a further appeal lies to the Goods and Services Tax Appellate Tribunal under Section 112, once constituted and operational in the relevant jurisdiction, and until the Tribunal becomes fully functional in a state, taxpayers have in some cases approached the High Court by way of writ petition to protect their right of appeal within limitation.

The appeal should clearly set out the grounds on which the order is challenged, whether on facts, on law, or on procedural grounds such as violation of natural justice, and should be supported by all relevant invoices, reconciliations and correspondence that were part of the original proceedings, since the Appellate Authority generally decides the matter based on the record along with any additional evidence permitted to be produced.

What to do next: 1) File the appeal in the prescribed form within three months of the order; 2) Pay the mandatory pre-deposit to obtain a stay on the disputed balance; 3) Prepare grounds of appeal supported by the full documentary record; 4) Track further appeal rights to the Appellate Tribunal if unsuccessful.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Central Goods and Services Tax Act, 2017, Section 107 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.