Monetary Limits Fixed for GST Appeal by Department

The GST Council has set some Monetary Limits on GST appeals filed by the department, in the 53rd meeting.

Reducing government litigation by setting monetary restrictions for filing appeals under the GST

To reduce government litigation, the Council advocated establishing monetary limits, subject to specified exclusions, for the department’s GST appeals before the GST Appellate Tribunal, High Court, and Supreme Court.

The following monetary limits have been recommended by the Council:

GSTAT: Rs. 20 lakhs

High Court: Rs. 1 crore

Supreme Court: Rs. 2 crores

Reduction of the amount of pre-deposit

The GST Council has recommended lowering the amount of pre-deposit required for submitting GST appeals in order to improve cash flow and working capital for taxpayers. The maximum sum for submitting an appeal with the appellate authority has been reduced from Rs. 25 crores (CGST and SGST) to Rs. 20 crores (CGST and SGST). Furthermore, the pre-deposit for submitting an appeal with the Appellate Tribunal has been reduced from 20% to a maximum of Rs. 50 crores CGST and Rs. 50 crores SGST to 10% with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.