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Section 107 of CGST Act - Appeals to Appellate Authority

Section 107 of the Central Goods and Services Tax Act, 2017 provides the first statutory appeal against a decision or order passed by a GST adjudicating authority. It deals with the time limit for appeal, condonation of delay, mandatory pre-deposit, automatic stay of the balance recovery, hearing procedure and the powers of the Appellate Authority.

Updated: 15 September 2026

Current position: An aggrieved person ordinarily has three months from communication of the decision or order to appeal. The Appellate Authority may allow a further period of one month on sufficient cause. The statutory pre-deposit generally includes the admitted dues plus 10% of the remaining tax in dispute, subject to the statutory ceiling. For an order demanding penalty without any tax demand, the current proviso requires pre-deposit of 10% of that penalty.
Taxpayer appealWithin 3 months from communication of the decision or order.
Further condonable periodUp to 1 additional month, if sufficient cause is shown.
FormFORM GST APL-01 under Rule 108 for an appeal by an aggrieved person.
RecoveryOn payment required by Section 107(6), recovery of the balance is deemed stayed under Section 107(7).

Meaning and scope of Section 107

An appeal is a statutory remedy by which a person aggrieved by an appealable decision or order asks the prescribed Appellate Authority to examine that decision or order. Section 107 applies to decisions or orders passed under the CGST Act, the relevant State GST Act or the Union Territory GST Act by an adjudicating authority, subject to the exclusions and special provisions contained elsewhere in the GST law.

Before filing, the appellant should also check Section 121 - Non-appealable decisions and orders, because certain administrative decisions specified there are not appealable under the ordinary appellate mechanism.

Time limit for appeal under Section 107

Who filesNormal periodAdditional period
Person aggrieved - Section 107(1) 3 months from communication of the decision or order Further 1 month if sufficient cause is shown - Section 107(4)
Authorised officer on Commissioner's direction - Section 107(2) 6 months from communication of the decision or order Further 1 month if sufficient cause is shown - Section 107(4)

The date of communication of the order is therefore important. The appellant should preserve the portal record, email, physical service record or other material showing when the order was communicated.

Mandatory pre-deposit under Section 107(6)

An appeal under Section 107(1) cannot be filed unless the appellant pays the amount admitted by the appellant and the statutory pre-deposit. For a disputed tax demand, clause (b) requires 10% of the remaining tax in dispute, subject to a maximum of Rs. 20 crore, in relation to the appeal.

The current proviso also covers a penalty-only order: where an order demands penalty without involving any demand of tax, an appeal cannot be filed unless 10% of the penalty has been paid.

Effect of pre-deposit: Section 107(7) provides that once the amount required by Section 107(6) is paid, recovery proceedings for the balance amount are deemed to be stayed.

How to file an appeal - Rule 108 and FORM GST APL-01

Rule 108 of the CGST Rules prescribes FORM GST APL-01 for an appeal to the Appellate Authority under Section 107(1). GST Portal guidance presently directs users to the appeal facility under Services > User Services > My Applications. The appeal contains the order details, disputed amounts, statement of facts, grounds of appeal and prayer.

Where the appealed order is not available on the common portal, the applicable Rule 108 procedure regarding submission of the copy of the order and acknowledgement should be followed. The appellant should rely on the current portal workflow and current Rule 108 at the time of filing.

Practical appeal checklist

  • Identify the exact order and date on which it was communicated.
  • Confirm that the order is appealable and identify the correct Appellate Authority.
  • Calculate the admitted amount and mandatory pre-deposit under Section 107(6).
  • Prepare the statement of facts, concise grounds of appeal and precise relief sought.
  • File FORM GST APL-01 and complete the document/acknowledgement requirements under Rule 108.
  • Keep the ARN, acknowledgement, payment evidence and complete filed set for the hearing.

Hearing, additional grounds and appellate powers

Section 107(8) requires the Appellate Authority to give the appellant an opportunity of being heard. Under Section 107(9), adjournment may be granted for sufficient cause, with reasons recorded in writing, but not more than three adjournments may be granted to a party during the hearing.

Under Section 107(10), an additional ground may be permitted at the hearing if omission of that ground from the original grounds was not wilful or unreasonable. Under Section 107(11), the Appellate Authority may confirm, modify or annul the appealed decision or order after such further inquiry as may be necessary. The section does not permit the Appellate Authority simply to refer the case back to the adjudicating authority that passed the order.

The appellate order must be in writing and state the points for determination, the decision on those points and the reasons for the decision. Where possible, the appeal should be heard and decided within one year from filing, subject to exclusion of a period during which issuance of the order is stayed by a court or Tribunal.

Section 107 of the Central Goods and Services Tax Act, 2017

(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.

(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.

(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.

(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.

(5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.

(6) No appeal shall be filed under sub-section (1), unless the appellant has paid -

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty crore rupees, in relation to which the appeal has been filed.

Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty has been paid by the appellant.

(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed.

(8) The Appellate Authority shall give an opportunity to the appellant of being heard.

(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:

Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.

(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.

(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:

Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:

Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under the applicable demand provisions of the Act.

(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.

(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed:

Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.

(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.

(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.

(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118, be final and binding on the parties.

Editorial note: The explanatory article above is intended as a practical guide. For filing or litigation, verify the current bare Act, applicable notifications, Rules, portal procedure and the facts of the particular order.