Tax Professionals Appeal to FM for Reduction of Fees for Filing Appeal to GST Appellate Tribunal

The All Gujarat Federation of Tax Consultants (AGFTC) and Income Tax Bar Association (ITBA) have made representation before Smt. Nirmala Sitharaman regarding the reduction of fees for filing an appeal to the Appellate Tribunal under GST Act(s) 2017.

The Text of the Representation is as follows:

Fees for filing an Appeal to the Appellate Tribunal under GST Act 2017

Issue

As substituted by Notification 12/2024 – Central Tax, Sub Rule (5) of rule 110 of Central Goods and Services Tax Rules, 2017 provides for the fees for filing of appeal or restoration of appeal is one thousand rupees for every one lakh of rupees of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fees or penalty determined in the order, subject to a maximum of twenty-five thousand rupees and minimum of five thousands rupees.

The Proviso says that fees for filing an appeal an order not involving any demand of tax, interest, fine, fees or penalty shall be five thousand rupees.

Similarly, Sub Rule (5) of Rule 110 of the respective State Goods and Services Tax Rules, 2017 provides for fees of one thousand rupees for every one lakh rupees of tax or input tax credit involved, or the difference in tax or input tax credit involved, or the amount of fine, fees, or penalty determined in the order, up to a maximum of twenty-five thousand rupees and a minimum of five thousand rupees.

In the foregoing scenario, the fees for submitting an appeal with the Appellate Tribunal will be one thousand under CGST law and one thousand under each SGST law for every one lakh rupees, up to a maximum of twenty-five thousand under CGST law and twenty-five thousand under respective SGST law.

As a result, the minimum and maximum fees under both regulations will be ten thousand rupees and fifty thousand rupees, respectively. This penalty is excessive and unreasonable.

Parallel provision in the Income Tax Act

Subsection (6) of Section 253 of the Income Tax Act of 1961 specifies the fees for filing an appeal with the Appellate Tribunal.

It provides that –

(a) where the total income of the assessee as computed by the Assessing Officer in the case to which the appeal relates, is one hundred thousand rupees or less, five hundred rupees.

(b) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees, but not more than two hundred thousand rupees, one thousand five hundred rupees,

(c) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one per cent. of the assessed income, subject to a maximum of ten thousand rupees,

(d) where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c), five hundred rupees.

So, under the Income Tax Act of 1961, maximum fees are one percent of the assessed income, up to a maximum of ten thousand rupees, and minimum fees are five hundred rupees.

Our suggestion regarding fees for filing an Appeal to the Appellate Tribunal under the GST Act 2017

We humbly suggest fixing fees for filing an Appeal to the Appellate Tribunal as under-

(a) where tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fees or penalty determined in the order, in the case to which the appeal relates, is one hundred thousand rupees or less, five hundred rupees.

(b) where tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fees or penalty determined in the order, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees, but not more than two hundred thousand rupees, one thousand five hundred rupees,

(c) where the total tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fees or penalty determined in the order, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one per cent. of the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fees or penalty determined in the order, subject to a maximum of five thousand rupees.

(d) where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c), five hundred rupees.

According to the above suggestion, the fees for filing an appeal with the Appellate Tribunal will be five hundred rupees under CGST law and five hundred rupees under the respective SGST law, i.e. one thousand rupees, and five thousand rupees under the respective SGST law, i.e. ten thousand rupees.

Request

We humbly request you to consider the representation made by AGFTC and ITBA and oblige.

For Official Representation Download PDF Given Below: