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  7. Guide to Appeal Against Demand Order under GST

Procedure to File an Appeal against a Demand Order

Updated on: 14 Oct, 2024 06:12 PM

A demand order under GST is a written notice sent through the official channel to the taxpayer if the GST officer believes that the taxpayer owes any taxes under the GST Act. It is a formal notice issued by the GST officer to the taxpayer in case he/she has a pending tax liability.

Whether the taxpayer is registered under GST or not, he/she can file an appeal against such an order within 3 months from the date of receiving the notice. In this article, we will cover the procedure to file an appeal against a demand order and the steps for filing a reply to the demand order.

Contents

How to File First Appeal Against Demand Order?

Conditions required to initiate an appeal:

  • The taxpayer is eligible to file an appeal to the Appellate Authority only if an order has been issued by the adjudicating authority.
  • Ensure that a PDF reader is installed on your computer to access the PDF file containing the order.

Step-by-step Procedure:

Step 1: Access the GST portal and log in.

Step 2: Navigate to Services > User Services > My Applications.

On the 'My Applications' page, choose the application type as 'Appeal to Appellate Authority' and click on 'New Application.'

The 'GST APL-01-Appeal to Appellate Authority' page will appear.

Step 3: Specify the order type as 'Demand Order' and input the order number. Click on search.

The orders page will be presented.

Step 4: From the drop-down list, select one or more categories of the case under dispute and click on add.

A list of cases will be displayed.

The taxpayer can edit the date of communication and the period of dispute.

Step 5: Upload annexure to GST APL-01- Click on the 'click here' link on the order page.

Download the GST APL-01 template, update the details in the annexure, save the file as 'AplAnnexureTemplate.pdf,' and upload it.

Step 6: Update the disputed amount/payment details by clicking on the 'Disputed amount/Payment details' button on the order page.

  • Enter the amount under dispute by classifying it according to the tax head, late fee, or interest.
  • The amount of demand created and admitted is automatically displayed.

Note: Demand admitted = Demand created – Amount disputed.

  • Enter the percentage value of the pre-deposit, set at a minimum of 10% of the amount disputed.
  • A lower percentage requires approval from the authority, and the 'Details of Payment required' table is auto-filled.
  • Enter the place of supply details for the amount of demand admitted.
  • Choose the payment method: cash or ITC in the electronic ledger.

Step 7: Add supporting documents if necessary, provide a document description, and choose the file for upload.

Step 8: Preview the application by clicking on the 'Preview' button. Download the PDF file to verify the details.

Step 9: Proceed to file – Select the declaration checkbox, choose the authorized signatory, and enter the place to proceed with filing.

Click submit and proceed to file with DSC or EVC. Upon successful submission, a confirmation message will be displayed.

How to File a Reply During an Appeal Proceeding?

The Appellate Authority has the option to initiate proceedings and conduct hearings for the resolution of an appeal or may summon the appellant during the review of the tax department’s appeal application. To respond during an appeal proceeding, taxpayers should adhere to the following steps:

Step 1: Log in to the GST portal and navigate to Services > User Services > View Additional Notices/Orders.

Step 2: On the case details page with the specific Case ID, select the notice tab and then click on the reply option. This action opens a page titled 'Submit a reply to the notice.'

Step 3: Upload the reply file, attach supporting documents, verify the checkbox, and then click on the ‘File Reply’ button.

A warning message will appear. Click proceed and then submit with DSC or EVC. An acknowledgment will be displayed upon the successful upload of the reply.

How to File a Rectification Request of an Appeal?

Procedure for Submitting a Rectification Request for an Appeal:

Step 1: Log in to the GST portal.

Step 2: Navigate to Services > User Services > View Additional Notices/Orders. Click on 'View' on the 'Additional Notices/Orders' page.

Upon clicking, the Case Details page will be displayed.

Step 3: Access the 'Orders' tab and select 'Initiate rectification.'

Step 4: The 'Initiate rectification' page will appear. Choose the relevant rectification reason and upload any necessary supporting documents. Then, click on 'Initiate' and proceed to submit with either DSC or EVC.

Upon successful submission, a message will appear, indicating the rectification request number.

The appeal process against a GST demand order involves following a systematic approach. Taxpayers, whether registered under GST or not, can file an appeal within three months of receiving the notice. The step-by-step procedure outlined here, from accessing the GST portal to submitting relevant documents, guides users through filing an appeal, replying during proceedings, and initiating rectification requests. However, the complexities involved with GST compliance can be intimidating. Therefore, it is advisable to get help from tax experts who can help ensure a smooth GST compliance process.

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Frequently Asked Questions

Q- What is the time limit for a GST appeal against a demand order?

The time limit to file an appeal before the appellate authority is 3 months from the date of communicating the demand order. However, the Appellate authority might condone the delay of upto 1 month in case he/she is satisfied that there is a genuine reason for such delay.

Q- What is the minimum amount to be paid for GST appeal?

A minimum of 10% of the disputed tax amount has to be paid before filing an appeal. This percentage may be lowered after getting approval from the tax authorities.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.