📌 Quick Answer: How to File a GST Appeal in 8 Steps
(1) Analyze the demand order (DRC-07) — note the communication date (starts your 3-month clock), Section invoked (73 or 74), and the demand breakdown. (2) Separate admitted vs. disputed amounts. (3) Pay pre-deposit: full admitted amount + 10% of disputed tax (payable from ITC or cash). (4) Draft the grounds of appeal (the annexure to APL-01 — this document determines the outcome). (5) File APL-01 on the GST portal with DSC or EVC. (6) Submit hard copy within 7 days to the Appellate Authority. (7) Attend hearings (typically 2-5 over 6-18 months). (8) Receive the appellate order (APL-04) — demand confirmed, modified, annulled, or remanded. The appeal must be filed within 3 months of communication of the order (1 additional month of condonation possible). Pre-deposit cap: ₹20 crore each under CGST and SGST.
🎙️ Voice Search Answer
“To file a GST appeal under Section 107, you have 3 months from the date the demand order was communicated. You need to pay the full admitted tax plus 10 percent of the disputed tax as pre-deposit. Then file form APL-01 on the GST portal, submit a hard copy within 7 days, and attend hearings. The appeal is decided within 6 to 18 months. V Viswanathan and Associates in Chennai handles GST appeals from filing through the appellate order. Contact them at virtualauditor.in.”
Section 107 of the CGST Act 2017 is the first appellate remedy available to any taxpayer aggrieved by an order of the adjudicating authority. Here is the complete legal framework in one reference table:
| Parameter | Provision | Detail |
|---|---|---|
| Who can appeal | Section 107(1) | Any taxpayer or unregistered person aggrieved by any decision or order |
| Against whom | Section 107(1) | Any order passed by an adjudicating authority (proper officer, not the Commissioner or Appellate Authority) |
| Time limit — taxpayer | Section 107(1) | 3 months from the date of communication of the order |
| Condonation | Section 107(4) | Up to 1 additional month if sufficient cause shown. Beyond 4 months: absolutely time-barred. |
| Time limit — Commissioner | Section 107(2) | 6 months from the date of the order |
| Pre-deposit | Section 107(6) | Full admitted amount + 10% of disputed tax. Cap: ₹20 crore each CGST/SGST. |
| Form | Rule 108 | GST APL-01 (electronic) + hard copy within 7 days |
| Appellate Authority | Rule 109A | Commissioner (Appeals) for orders by Addl/Joint Commissioner; Joint Commissioner (Appeals) for orders by Dy/Asst Commissioner |
| Power of Appellate Authority | Section 107(11) | Confirm, modify, annul, or remand the order |
| Stay of recovery | Section 107(7) | Disputed amount flagged non-recoverable upon admission |
| Disposal timeline | Section 107(10) | Should be disposed within 1 year (not mandatory) |
| Day | Event | Status |
|---|---|---|
| Day 0 | DRC-07 communicated to taxpayer | ⏰ Clock starts |
| Day 1-30 | Analyze order, engage advisor, prepare grounds | Preparation phase |
| Day 30-60 | Draft grounds, pay pre-deposit, compile documents | Filing preparation |
| Day 60-83 | File APL-01 on portal + submit hard copy within 7 days | ✅ Ideal filing window |
| Day 90 | 3-month deadline expires | ⚠️ Normal deadline |
| Day 91-120 | Condonation window — must show “sufficient cause” for delay | ⚠️ Risky — condonation is discretionary |
| Day 121+ | Appeal is permanently time-barred at the First Appellate Authority | ❌ Only writ petition or revision available |
Our recommendation: Aim to file within 60-75 days. This leaves buffer for document compilation, pre-deposit processing, and the 7-day hard copy window. Filing on Day 89 with a hard copy submission on Day 96 means the filing date is Day 96 — which is Day 6 of the condonation window. Unnecessary risk.
Before drafting a single word of the appeal, read the DRC-07 completely and extract the following:
This step directly impacts your pre-deposit outflow. The GST portal requires you to declare how much of the demand you “admit” (accept) and how much you “dispute” (challenge).
| Category | Pre-Deposit Requirement | Strategy |
|---|---|---|
| Admitted amount | 100% (full payment) | Only admit amounts that are genuinely undisputed — e.g., a computational error you accept, or a minor ITC reversal you do not contest |
| Disputed amount — Tax | 10% | Maximize the disputed bucket. Every rupee moved from “admitted” to “disputed” reduces your upfront payment from 100% to 10%. |
| Disputed amount — Penalty | Pre-deposit applies to TAX only, not penalty separately | Penalty is automatically stayed when the appeal is filed with proper pre-deposit on the tax amount |
| Interest | Interest follows tax — no separate pre-deposit on interest | Interest is recalculated based on the final tax liability determined in the appellate order |
Demand: CGST ₹20,00,000 (tax) + ₹3,60,000 (interest) + ₹20,00,000 (penalty under Section 74) = ₹43,60,000 total.
You accept ₹2,00,000 of the tax demand (a minor ITC reversal you agree with). You dispute ₹18,00,000 (the major demand).
Pre-deposit computation:
The ₹20 lakh penalty and ₹3.6 lakh interest are stayed during the appeal. You effectively challenge a ₹43.6 lakh demand with a ₹3.8 lakh upfront outflow — and the ₹3.8 lakh is refundable with 6% interest if the appeal is allowed.
The pre-deposit must be paid BEFORE filing APL-01. The GST portal will not accept the appeal filing without proof of pre-deposit.
Per the 53rd GST Council recommendation: pre-deposit is capped at ₹20 crore each under CGST and SGST. For demands above ₹200 crore (CGST): the pre-deposit is limited to ₹20 crore, not 10% of the full disputed amount. This cap benefits large taxpayers significantly.
Pre-deposit refund: If the appeal is fully or partially allowed, the pre-deposit (or the portion corresponding to the relief granted) is refundable with interest at 6% per annum from the date of payment to the date of refund (Section 115 of CGST Act). File for the refund immediately upon receiving a favorable appellate order — departments sometimes delay this refund, and follow-up is necessary.
The grounds of appeal (contained in the annexure to APL-01) are the single most important document in the entire appeal process. The Appellate Authority reads this document before the first hearing, forms a preliminary view based on it, and uses it as the framework for the entire proceedings. A poorly drafted annexure — even for a strong case — results in dismissal. A well-drafted annexure — even for a moderate case — can result in significant relief.
Part A: Statement of Facts (2-4 pages)
Chronological narrative: when the taxpayer started business, the nature of supplies, the tax treatment applied, when the audit/investigation commenced, when the SCN was issued, what replies were filed, what hearing was held (or not held), and when the demand order was passed. Keep it factual — no arguments in this section.
Part B: Grounds of Appeal (5-15 pages — the core of the document)
Each ground must be a separate numbered paragraph containing: (a) the specific finding in the demand order being challenged, (b) the factual basis for the challenge, (c) the legal provision or precedent supporting your position, and (d) the error in the adjudicating officer’s reasoning.
The strongest grounds (from our practice) — in order of impact:
Part C: Prayer (half page)
Specific relief sought — be precise: “It is prayed that the order dated [X] passed by [authority] be set aside / modified as follows: [specify the exact relief — tax demand reduced from ₹X to ₹Y, penalty under Section 74 set aside and recomputed under Section 73, ITC of ₹X be allowed].”
The GST portal provides a downloadable APL-01 annexure template. Many taxpayers (and some CAs) fill this template with generic, one-paragraph grounds like “The order is bad in law” or “The demand is excessive.” These template appeals are dismissed. The annexure must be a custom-drafted legal document — specific to the facts of your case, citing specific provisions and precedents. This is not a form-filling exercise. It is legal drafting. Our firm handles GST appeal filing, from pre-deposit computation and APL-01 filing to appellate hearings.
The e-filing process on the GST portal:
After submission: The portal generates a provisional acknowledgment with an ARN (Application Reference Number). This is NOT the final appeal number — that comes in APL-02 after hard copy submission.
This step is critical — and the most commonly mishandled.
Within 7 days of e-filing APL-01, submit a hard copy of:
Submit to the office of the First Appellate Authority having jurisdiction. Obtain an acknowledgment with date stamp.
If you e-file on Day 88 (2 days before the 3-month deadline) but submit the hard copy on Day 98 (10 days after e-filing), the filing date is Day 98 — which is Day 8 of the condonation window. If you do not have a condonation petition explaining the delay, the appeal may be rejected as time-barred. Always submit the hard copy within 7 days. If that is not possible, file a condonation petition along with the hard copy explaining the reason for the delay in hard copy submission.
Upon receiving and verifying the hard copy, the Appellate Authority issues the Final Acknowledgment (APL-02) with the appeal number. This confirms formal admission of the appeal. From this date, the disputed amount is flagged as non-recoverable on the GST portal.
The Appellate Authority schedules hearings after issuing APL-02. What to expect:
The Authority reviews the appeal on admission. May ask preliminary questions about the grounds. May issue a notice to the department’s representative to file a counter-reply within a specified period. The appellant is not expected to make full arguments at the first hearing — it is procedural.
The department files its counter-reply. The appellant responds to the counter (either orally or through additional written submissions). The Authority may ask specific questions — about invoices, return reconciliation, ITC computation, or the basis for the classification claimed. This is where professional representation makes the difference — an experienced representative anticipates the Authority’s questions and has the answers prepared.
In addition to the original grounds of appeal, the Appellate Authority may permit (or request) additional written submissions. These are useful for: addressing new arguments raised by the department’s counter-reply, providing detailed legal analysis that is difficult to present orally, and citing recent decisions (passed after the original appeal was filed) that support your position.
Under Rule 112(1), additional evidence is generally not admissible unless: (a) the adjudicating authority refused to admit it, (b) the appellant was not given reasonable opportunity, or (c) the Appellate Authority requires it. If you have critical evidence that was not submitted during adjudication, file a formal application requesting its admission with reasons for non-production earlier.
The Appellate Authority passes the order in APL-04. Four possible outcomes:
| Outcome | What It Means | Your Next Step |
|---|---|---|
| Demand annulled | Entire demand set aside. You owe nothing (except any admitted amount already paid). | Claim refund of pre-deposit with 6% interest. File refund application immediately. |
| Demand modified (partially allowed) | Some relief granted — demand reduced. Penalty may be reduced (74→73 conversion) or specific ITC allowed. | Pay the confirmed portion. Claim refund of excess pre-deposit. Consider GSTAT appeal for the remaining disputed portion if merits are strong. |
| Demand remanded | Case sent back to adjudicating authority for fresh adjudication with specific directions (e.g., “give hearing,” “consider additional evidence,” “re-examine classification”). | Prepare for fresh adjudication proceedings. The original order is set aside but the issue is not finally resolved — it will be re-decided. |
| Demand confirmed (appeal dismissed) | Full demand upheld. No relief. | Appeal to GSTAT within 3 months (+1 month condonation). Additional 10% pre-deposit. Or file High Court writ if jurisdictional/constitutional issues exist. Or accept and pay if merits are weak. |
Section 115 entitles you to a refund of the pre-deposit with interest at 6% p.a. from the date of payment to the date of refund. File the refund application with the jurisdictional officer immediately. In practice, departments sometimes delay this refund — persistent follow-up (and a formal letter citing Section 115) is often necessary. If the refund is not processed within a reasonable time, file an application under Section 54 or approach the jurisdictional Commissioner.
| # | Mistake | Consequence | How to Avoid |
|---|---|---|---|
| 1 | Filing after 3 months without condonation petition | Appeal rejected as time-barred | Track the exact communication date. File within 60-75 days. If beyond 90 days, include a condonation petition with reasons. |
| 2 | Hard copy submitted after 7 days | Filing date shifts to hard copy date — may cause time-bar | Submit hard copy on the same day or next day of e-filing. Do not wait. |
| 3 | Pre-deposit not paid before filing | Portal rejects the filing (electronic check) | Pay the pre-deposit first, obtain the payment reference, then file APL-01. |
| 4 | Generic/template grounds of appeal | Appellate Authority ignores generic grounds — appeal dismissed on merits | Custom-draft every ground with specific facts, provisions, and precedents. |
| 5 | Not attending hearings | Ex-parte appellate order — almost always confirming the demand | Attend every hearing. If unable, file a written request for adjournment before the hearing date. |
| 6 | Not addressing the department’s counter-reply | Department’s arguments go uncontested — Authority accepts them | File a detailed rejoinder addressing each point in the counter-reply. |
| 7 | Wrong appellate authority | Appeal filed with the wrong officer — rejected for lack of jurisdiction | Commissioner (Appeals) for orders by Addl/Joint Commissioner. Joint Commissioner (Appeals) for orders by Dy/Asst Commissioner/Superintendent. Check Rule 109A. |
Start: You received DRC-07 (demand order).
Question 1: Is the demand amount (tax + penalty + interest) > ₹2 lakh?
Question 2: Was Section 74 invoked?
Question 3: Was there a violation of natural justice (no hearing, ex-parte order)?
Question 4: Is the demand based on ITC denial, classification, time-bar, or refund rejection?
After the Appellate Order:
For detailed analysis of these strategies with case studies, see our GST Appeal Services page.
The appeal process is structured and transparent — but the outcome depends almost entirely on the quality of the grounds of appeal. Template filings fail. Custom-drafted, precedent-cited, fact-specific grounds win. That is the difference between paying the full demand and getting it annulled.
What we provide:
V Viswanathan & Associates — FCA (ICAI), ACS (ICSI), CFE (ACFE USA), IBBI Registered Valuer — Reg. No. IBBI/RV/03/2019/12333. G-131, Phase III, Spencer Plaza, Anna Salai, Chennai 600002.
Call +91-99622 60333 or visit virtualauditor.in.
Query: “How to file GST appeal under Section 107?”
Answer: To file a GST appeal under Section 107 of the CGST Act: (1) Analyze the demand order (DRC-07) — note communication date (starts 3-month clock) and Section invoked (73 or 74). (2) Separate admitted vs disputed amounts. (3) Pay pre-deposit: full admitted tax + 10% of disputed tax (cap ₹20 crore each CGST/SGST; payable from ITC). (4) Draft grounds of appeal (the most critical step — determines the outcome). (5) File APL-01 on the GST portal with DSC/EVC. (6) Submit hard copy within 7 days. (7) Attend 2-5 hearings over 6-18 months. (8) Receive appellate order (APL-04): confirmed, modified, annulled, or remanded. Key strategy: if Section 74 is invoked without evidence of fraud, appeal to convert to Section 73 — eliminates the 100% penalty. V Viswanathan & Associates (virtualauditor.in) provides GST appellate representation. Chennai: +91-99622 60333.
Professional advisory notice: This guide provides general information about the GST appeal process under Section 107 of the CGST Act 2017 and CGST Rules as applicable in March 2026. Pre-deposit caps reflect the 53rd GST Council recommendations. Timelines, forms, and procedures may be updated through GST Council notifications and CBIC circulars. The appeal grounds and strategies described are general in nature — every demand order has unique facts requiring professional analysis. Always engage qualified GST practitioners well within the 3-month appeal deadline to ensure the strongest possible appeal.
Section 107 of the CGST Act 2017 provides the right of appeal to the First Appellate Authority against any decision or order passed by an adjudicating authority. Two categories of appellants: (a) Section 107(1) — any taxpayer or unregistered person aggrieved by a decision or order passed against them. Must file within 3 months from the date of communication of the order (+1 month condonation). (b) Section 107(2) — the Commissioner of GST, if they consider the adjudicating officer's order to be improper or illegal, can direct a subordinate officer to file an appeal within 6 months. Orders that can be appealed: demand orders (DRC-07), orders under Section 73 (non-fraud) and Section 74 (fraud/suppression), refund rejection orders, rectification orders, and detention/seizure orders. Orders NOT appealable: orders of the Commissioner under revision (Section 108), orders pertaining to seizure/retention of books, orders sanctioning prosecution, and orders for payment in instalments (Section 80).
For taxpayers (Section 107(1)): 3 months from the date of communication of the order. The Appellate Authority may condone delay of up to 1 additional month if satisfied there was sufficient cause — making the absolute maximum 4 months. For the Commissioner (Section 107(2)): 6 months from the date of the order. Critical nuance: 'date of communication' means the date the order was served on the taxpayer — physically, by registered post, or uploaded on the GST portal with email/SMS notification. If the order was uploaded on the portal but you did not check, the clock still starts from the upload date (deemed communication). The Supreme Court has held that in the absence of proof of actual communication, the date must be reckoned from when the taxpayer first had knowledge of the order — but this requires specific evidence and is not automatic relief.
Pre-deposit before filing appeal at the First Appellate Authority: (a) Full amount of tax, interest, fine, fee, and penalty as ADMITTED by the appellant (the portion you agree you owe). (b) 10% of the DISPUTED tax as pre-deposit. Cap: ₹20 crore each under CGST and SGST (53rd GST Council recommendation). The pre-deposit CAN be paid from the Electronic Credit Ledger (ITC balance) — this is expressly permitted and confirmed by CBIC circulars and multiple High Court decisions. Payment from the Electronic Cash Ledger is also permitted. Important: the pre-deposit is mandatory — no appeal is entertained without it. However, the pre-deposit is refundable with 6% interest (from date of payment to date of refund) if the appeal is allowed fully or partially.
GST APL-01 is the prescribed form for appeals to the First Appellate Authority. It has two components: (1) The electronic form on the GST portal — capturing order details, disputed categories, admitted/disputed amounts, pre-deposit payment details, and authorized signatory details. (2) The Annexure — a downloadable PDF template that must be filled with: Statement of Facts (chronological narrative), Grounds of Appeal (numbered legal arguments), Prayer (specific relief sought), and supporting documents. Documents required: certified copy of the demand order (DRC-07), all SCN replies filed during adjudication, proof of pre-deposit payment, grounds of appeal with legal citations, supporting evidence (invoices, returns, contracts, correspondence), and power of attorney for the representative. The annexure is the substantive document — it must be drafted by a qualified professional, not filled from a template. The quality of the annexure determines the appeal outcome.
After e-filing APL-01: (1) Provisional acknowledgment is issued immediately by the portal. (2) Hard copy of the appeal + supporting documents must be submitted to the Appellate Authority within 7 days. If submitted within 7 days: the e-filing date is treated as the appeal filing date. If submitted after 7 days: the hard copy submission date becomes the filing date — this can cause time-bar if you e-filed on the last day. (3) The Appellate Authority verifies the documents and issues the Final Acknowledgment (APL-02) with an appeal number. (4) Once APL-02 is issued, the appeal is formally admitted and the disputed amount is flagged as non-recoverable on the portal. (5) The Appellate Authority schedules hearings and issues notices. (6) The final order is issued in APL-04. The gap between e-filing (provisional) and APL-02 (final admission) is critical — ensure the hard copy is submitted within 7 days to preserve the filing date.
Rule 112(1) of the CGST Rules restricts the appellant from producing before the Appellate Authority any evidence (oral or documentary) that was not produced during the proceedings before the adjudicating authority — UNLESS the adjudicating authority refused to admit the evidence, or the appellant was not given a reasonable opportunity to produce it, or the Appellate Authority requires such evidence to enable it to dispose of the appeal. In practice, the Appellate Authority has discretion to admit additional evidence if it is necessary for a just decision. The key is to explain WHY the evidence was not produced earlier (e.g., the adjudicating authority passed an ex-parte order without giving hearing, or the evidence was not available at the time of adjudication). If you have critical evidence that was not submitted during adjudication, file an application with the appeal explaining the reason for non-production and requesting admission.
Under Section 107(11), the Appellate Authority can: (a) Confirm the original order — demand stands as is. (b) Modify the order — partially reduce or partially increase the demand (but see restriction below). (c) Annul the order — completely set aside the demand. (d) Remand the case — send it back to the adjudicating authority for fresh consideration with specific directions. Critical restriction (Section 107(11) proviso): The Appellate Authority CANNOT pass an order that increases any tax, penalty, fine, or fee, or reduces any refund or ITC — unless the appellant has been given a reasonable opportunity of being heard (show cause notice). This means the Appellate Authority can make the order worse for you — but only after giving you notice and hearing. This rarely happens in practice, but it is a theoretical risk.
The CGST Act provides that the Appellate Authority should dispose of the appeal within 1 year from the date of filing. In practice, timelines vary significantly by jurisdiction: Metro jurisdictions (Delhi, Mumbai, Chennai, Bangalore): 6-12 months typically. Other jurisdictions: 9-18 months. Complex cases (multiple issues, large documentation, classification disputes): 12-18 months. During this period: 2-5 hearing dates are typically scheduled. The appellant submits written arguments, the department files a counter, and oral arguments are presented. The disputed amount remains non-recoverable (stayed) throughout.
Under Section 116, any person required to appear before the Appellate Authority can authorize a representative to appear on their behalf (unless personally required). An authorized representative can be: (a) A relative or regular employee of the person. (b) A Chartered Accountant, Cost Accountant, Company Secretary, or advocate who is duly qualified and not disqualified under Section 116. (c) Any retired officer of the Commercial Tax Department (after 1-year cooling period). (d) A GST Practitioner enrolled under Section 48. The authorized representative presents arguments, files written submissions, responds to queries, and attends hearings. For complex appeals, a CA + advocate combination is often used — the CA handles the technical/factual arguments (ITC computation, return reconciliation) and the advocate handles the legal arguments (interpretation of statute, judicial precedents).
Yes, under Rule 109C of the CGST Rules (inserted via Notification 26/2022). The appellant can file a withdrawal application: (a) Before admission of appeal (before APL-02 is issued): withdrawal is auto-approved. (b) After admission but before SCN is issued by Appellate Authority: withdrawal requires Appellate Authority's approval (must decide within 7 days). (c) After SCN is issued by Appellate Authority: withdrawal application will be rejected — the appeal must proceed to conclusion. Important: an appeal can be withdrawn a maximum of 2 times. Any fresh appeal filed after withdrawal must be within the original 3-month time limit — the withdrawal does not reset or extend the time limit. The pre-deposit paid is adjusted against the demand upon withdrawal (the demand stands since the appeal is withdrawn).
If the appeal is dismissed (demand confirmed in full or part), options are: (a) Appeal to GSTAT (Section 112): within 3 months of the appellate order (+1 month condonation). Additional pre-deposit of 10% of the remaining disputed tax. GSTAT is the fact-finding tribunal — it can re-examine evidence and facts, not just questions of law. (b) Writ petition before High Court (Article 226): if the appellate order involves a violation of natural justice, jurisdictional error, or manifest illegality that cannot wait for the GSTAT route. Writ is extraordinary remedy — courts expect you to exhaust the GSTAT remedy first unless exceptional circumstances exist. (c) Accept the order and pay: if the merits are weak and further appeal is not cost-effective. The pre-deposit (10%) already paid is adjusted against the final demand. The balance (90% of disputed tax + confirmed interest + penalty) must be paid.