CBIC issues Circular for fixing monetary limits for filing Depatmental appeals

The GST Council and its endeavors to improve judicial management and minimize the cases awaiting for the final judgments has provided another solution through the Ministry of Finance in the form of the Central Board of Indirect Taxes and Customs/Central GST by issuing Circular No. 207/1/2024-GST.

This circular sets up new monetary limits for filing appeals by the Department before different courts and tribunals under the CGST Act, 2017.

The circular, No. 14/2024 dated June 26, 2014, is under the National Litigation Policy (NLP) as a tool to minimize government litigation by establishing thresholds for appeals in revenue cases. This policy recommends that where the amount of money involved is less than a stipulated amount, then an appeal should not be made, to avoid wastage of resources.

Key Provisions of the Circular:

1. Monetary Limits for Filing Appeals: Monetary Limits for Filing Appeals:

a) Goods and Services Tax Appellate Tribunal (GSTAT): Rs. 20 lacs only

b) High Court: Rs. 1,00,00,000

c) Supreme Court: Rs. 2,00,00,000

Such restrictions pertain to situations where the request is made for tax, interest, fees for late payment excess payments, or refunds.

2. Considerations for Filing Appeals:

• Appeals should be filed on the cumulative value of tax in controversy which will include CGST, SGST/UTGST, IGST, and Compensation Cess.
• Where the dispute pertains to demand of interest only, the amount of interest shall be considered for applying the monetary limit for filing appeal.
• Where the dispute pertains to imposition of penalty only, the amount of penalty shall be considered for applying the monetary limit for filing appeal.
• Where the dispute pertains to imposition of late fee only, the amount of late fee shall be considered for applying the monetary limit for filing appeal.
• Where the dispute pertains to demand of interest, penalty and/or late fee (without involving any disputed tax amount), the aggregate of amount of interest, penalty and late fee shall be considered for applying the monetary limit for filing appeal.
• In cases where refunds were made erroneously, the amount of refund in dispute (including CGST, SGST/UTGST, IGST and Compensation Cess) will be considered for deciding the appeal limit.
• In a composite order which disposes more than one appeal/demand notice, the monetary limits shall be applicable on the total amount of tax/interest/penalty/late fee, as the case may be, and not on the amount involved in individual appeal or demand notice.

3. Exclusions to the Monetary Limits:

Nevertheless, the appeals can be still made regardless of the monetary limits in the following circumstances:

• Aspects of validity of provisions of the GST laws.
• Any matter which might cause the tax authorities to value or classify any goods or services in a particular way, give or refuse a refund, determine the place of supply of any service, or matters which frequently require interpretation.
• Situations in which comments or costs have been negatively made against the government or its officers.

Read the Circular given below for more information.