TaxTMI 
TaxTMI 
TaxTMI 
1. Amongst several initiatives of the 56th GST Council meeting, despite the fact that the reduction in GST rates, good initiatives on rate rationalisation etc. really help the country as a whole, the most welcome step is the operationalisation of the GSTAT. Even during June 2025, clarity was not there on this issue and it was expected that in its 9th year of journey, the GST law must see the GSTSAT. It is good to see the announcements on GSTAT.
2. There are several practical issues addressed which is a real GIFT to the taxpayers as well as tax professionals. Though there is some delay in establishing the required benches across the country, the challenges the Government had were many and for legal professionals dealing in GST, it is a great relief to see the GSTAT benches.
3. The most important aspect on filing appeal in GSTAT is the time limit. Considering the fact that there is a huge accumulation of cases where the taxpayers were aggrieved by the orders passed by the first appellate authority, a practical solution to ensure that all deserving cases reach the GSTAT, the deadline is fixed. As per the recent notification, for all the orders passed by the first appellate authority since 01/07/2017 till 31/03/2026, the deadline for filing the appeal with GSTAT is kept as 30/06/2026. This is a good move for tax professionals to plan their work and start filing the required appeals with GSTAT in a phased manner.
4. There is a different aspect attached to this move, which is a golden opportunity for all taxpayers who are aggrieved by the orders passed by the first appellate authority. Irrespective of the fact as to whether the taxpayer has paid only the required pre deposit or the full applicable taxes, in all the cases where the order of the first appellate authority is adverse one on the following few aspects, it is time to revisit such cases and prefer the appeal before GSTAT immediately.
5. All orders passed by the first appellate authority, purely on limitation ground, despite the merits of the case are the first category which may prefer the appeal now, in case amount involved is significant and legally, there is a strong ground against such rejections.
6. Orders passed by adjudicating authority by ignoring the principles of natural justice which were subsequently rejected in the first appeal, deserve appeal in GSTAT now. The taxpayer as well as tax professional may review such cases to take full advantage of the current situation.
7. Wherever the receiver of goods or services was not allowed to avail ITC due to the fact that the supplier did not pay GST to Government, or the registration of the supplier was cancelled subsequently etc are very strong cases for next appeal. In cases where applicable due are paid in full to the supplier within 180 days by the receiver, tribunal may take a lenient view, once it is established that inward movement as well as payment through banking channel took place.
8. The next category is the incorrect application of section 74. CBIC has vide their instruction dated 13/12/2023, explained the cases where section 74 may be invoked. However, in reality, several SCNs are issued under section 74 only to ensure that more period is covered under SCN. Many a times, the dealing tax professionals also do not argue vehemently on Section 74 due to several reasons. Once it is established that all the required information based on which SCN was issued were available with the tax authority and there was no intention to evade payment of GST, Tribunal is most likely to grant required relief.
9. Where there was a tax demand which was confirmed at OIO stage and OIA also rejected on flimsy ground, and the demand is on account of differences in GSTR, so long as there is no revenue loss to the Government, minor procedural lapses should not end in payment of additional GST.
10. In a few cases, it is absolutely possible for denial of ITC on construction related goods or services under section 17(5), despite the fact that the concerned expenses were revenue in nature. ITC denial is required only where such expenses are capitalised in the books of accounts. In all such cases, wherever the amount involved is highly significant, preferring appeal before Tribunal is worth.
11. The basic requirements for filing the appeal are that the taxpayer is aggrieved by the OIA, orders passed by first appellate authority is during 01/07/2017 till March 2026 and the payment of required pre deposit. A time span of nine months to review all the deserving cases is the GIFT for the taxpayer as well as tax professionals to ensure proper justice on GST in the GSTAT.
12. It may be concluded that all OIA which are covered in any category as discussed in the preceding paragraphs deserve to be taken to the next appeal, which is absolutely possible as on date by proper review of such orders as to whether the amount is significant, legal ground is strong etc.