What are the grounds of appeal in Goods and Service Tax?

The government is getting ready to set up a way for audits to be done online. With a law like GST that is constantly changing, businesses need to know the details of Departmental Audits and Litigation under GST to make sure they are ready to defend their cases.

Audits are done not only when they are supposed to, but also when a suspicious record or change in the GST filing is found. Because of this, it is very important to gather, store, and check the data needed for departmental audits on a regular basis and to understand things like GST appeals.

What is GST Appeal?

Any legal appeal is a way to try to get a higher court to look at a lower court’s decision again. When there are problems or disagreements with the law, appeals are made. You can learn more by reading our article on GST Appeals and Legal Disputes.

Levels of appeals under GST

There are 4 levels of appeals, and each one goes to a different authority and is governed by a different law.

Level 1 – Under section 107 of the GST act, if the order is made by the Adjudicating Authority, you can appeal to the First Appellate Authority.

Level 2: If the order is made by the First Appellate Authority, you can appeal to the Appellate Tribunal under sections 109 and 110 of the GST act.

Level 3: If the Appellate Tribunal rules against you, you can take your case to the High Court under sections 111–116 of the GST act.

Level 4: If the High Court makes the decision, you can appeal to the Supreme Court under sections 117 and 118 of the GST act.

Filing a GST Appeal

A person who is unhappy with any of the above orders can file a GST appeal. It has to be filled out on Form GST APL-01 and sent in with the right paperwork.

As soon as the appeal is sent in, the provisional acknowledgement will be given. But the final acknowledgement with the appeal number won’t be sent out until Form GST APL-01, a copy of the challenged order, and a statement of the facts and reasons for the appeal are sent by hand within 7 days of getting the provisional acknowledgement.

Important points to note before drafting grounds of GST Appeal

Before writing the grounds of appeal, one must do an in-depth study of all the documents, such as the GST Returns, copies of timely communications from the right officer, copies of the SCN (show cause notice), replies to the SCN, copies of proceedings/orders or decisions made by the adjudicating authority, and copies of the appellate order. To get ready to write the reasons for a GST appeal, it is very important to have all the paperwork in order.

Grounds of appeal in GST

The person who wants to appeal can do so if they don’t agree with the findings, observations, or conclusions made by the person who gave the order. It is the appeal’s most important point. In GST, grounds of appeal are the things that show what the dispute between the assessee and the revenue is about. A ground of appeal is the nature of a claim, so it is different from arguments, which are used to support claims. There may be more than one reason to support a claim, but none of those reasons can be the basis of an appeal.

Here are some tips to draft the grounds of appeal effectively:

Every GST appeal memo has to be written in English, and the grounds of appeal have to be short and clear.
Each ground must have its own heading.
Grounds must not include any arguments or descriptions of events, even if those things are needed to show what the dispute is about.
Grounds should be given numbers in order.

What is the appeal fee in GST?

Those who want to appeal must use the right forms and pay the right fees. The fee will be the full amount of tax, interest, fine, fee, and penalty from the challenged order, which the appellant has admitted, AND 10% of the amount in dispute.
If an officer or the Commissioner of GST wants to appeal, they won’t have to pay any fees.

What is the time limit for filing an appeal in GST?

The appeal must be made within three months of the date on which the order was sent by the person making the decision.
But, according to the rule of condonation appeal filing delays, you can wait up to one more month, but only if you have a good reason for the delay and documents to back it up.

What are appealable orders?

Here are some orders that a person who is unhappy with can file an appeal against:

Enforcement Order
Assessment or Demand Order
Registration Order
Refund Order
Assessment Non-Demand Order
LUT Order

When can the appeal NOT be filed?

To keep the appeals process under control and avoid unnecessary legal costs, the Board or the State Government may, based on advice from the Council, set monetary limits for GST officer appeals.

Not every decision can be fought in court. The following decisions made by a GST officer cannot be challenged:

Order to move the proceedings from one officer to another officer;
Order to seize or keep books of account and other documents;
Order allowing prosecution under the Act;
Order allowing tax and other amounts to be paid in instalments.

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What are the grounds of appeal in GST?