RECENT DEVELOPMENTS IN GOODS AND SERVICES TAX

The World Bank has upgraded India's GDP growth forecast for FY 2026-27 to 6.6% from earlier 6.3% in the backdrop of robust domestic economic activities, despite risk of higher inflation and energy prices (7.6% projected for FY 2026). In case of others, the forecast has been lowered. The revised estimates are Moody's (6%) and OECD (6.1%).

MoF has announced various measures as a relief in customs duty on SEZ goods sold domestically for next one year. The duty relief ranges from 5% - 12.5% for certain goods such as silk, perfumes, photographic goods, yarn, glassware etc. CBIC has also waived full customs duty on certain petro-chemical products to benefit certain sectors dependent on petro-chemicals. These measures are to provide relief owing to West Asia crises.

According to reports, indirect tax collections for FY 2026 have exceeded Revised Estimates (RE) for FY 2026. Central GST collection was 100.8% while overall non-GST collection was at 101.2%. For health and national security cess, collection is 63% lower than the estimate of Rs. 2330 crores. The total indirect tax collection including Central Excise, GST and Customs is about Rs. 15.52 lakh crore which includes Rs. 2.58 lakh crore from customs duty Rs. 3.38 lakh crore from central excise duty and Rs. 9.58 lakh crore from GST.

Various benches of GSTAT have started functioning as per public notices issued. For want of infrastructure, few benches are operating from temporary locations. There continues to be operational hiccups in filing appeals and other procedural issues in online filing of appeals. However, it is expected that GSTAT benches may be fully operational in next few weeks or so.

GSTN has issued few advisories on overcoming filing of appeals and making of pre-deposit option editable due to mismatch in amount as per auto population and actual amount payable.

Notification for appeal filing before GSTAT in Karnataka

• Karnataka Government has issued Notification under Karnataka GST Act, 2017 notifying date(s) for filing appeal before GSTAT.
• Accordingly, 30th day of June, 2026 has been notified as the date upto which appeal may be filed before the Appellate Tribunal under the Act in respect of all cases where the order sought to be appealed against is communicated to the person preferring the appeal before the 1st day of April, 2026 and all appeals in respect of order communicated on or after 1st April, 2026 may be filed before the Appellate Tribunal within three months from the date on which such order is communicated to the person preferring the appeal.

[Source: Notification No. FD/ 11/CSL/2026 dated 23.02.2026

issued by Finance Department, Government of Karnataka]

GSTAT, Kolkata Bench

• The Kolkata Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) has commenced functioning. The office address of the Kolkata Bench, GSTAT is at:

'2/5, Judges Court Road, Alipore, Kolkata-700027 (Old Door Sanchar Bhawan)'

• The Kolkata Bench shall exercise jurisdiction over the following States and Union Territory:
• West Bengal
• Sikkim
• Andaman and Nicobar Islands
• The Bench shall hear appeals filed under the provisions of the Central Goods and Services Tax Act, 2017 and the respective State/Union Territory Goods and Services Tax Acts, as applicable, arising from the above-mentioned jurisdictions.

[Source: Public Notice 01/2026 dated 23.03.2026

issued by Deputy Registrar, Kolkata Bench, GSTAT]

Notification for appeal filing before GSTAT in Maharashtra

• Maharashtra Government has issued Notification under Maharashtra GST Act, 2017 notifying date(s) for filing appeal before GSTAT.
• Accordingly, 30th day of June, 2026 has been notified as the date upto which appeal may be filed before the Appellate Tribunal under the Act in respect of all cases where the order sought to be appealed against is communicated to the person preferring the appeal before the 1st day of April, 2026 and all appeals in respect of order communicated on or after 1st April, 2026 may be filed before the Appellate Tribunal within three months from the date on which such order is communicated to the person preferring the appeal.

[Source: Notification No. MGST/2026 /CR-11/ taxation-I dated 24.03.2026

issued by Deputy Secretary, Government of Maharashtra]

GSTAT Bench, Ernakulam

• W.e.f. 26.03.2026, the Ernakulam Bench of the Goods and Services Tax Appellate Tribunal (GSTAT)has formally commenced its judicial operations.
• The temporary office address of the Ernakulam Bench, GSTAT is: 3rd Floor, CGST Headquarters, Central Revenue Building, LS. Press Road, Kacheripady, Ernakulam, KeraIa-682018
• The Ernakulam Bench shall exercise jurisdiction over the Kerala State and Union Territory of Lakshadweep as notified by the Department of Revenue vide Notification No S.O. 5063(E) dated 26.11.2024.
• The Bench shall hear appeals filed under the provisions of the Central Goods and Services Tax Act, 2017 and the respective Stale/Union Territory Goods and Services Tax Acts, as applicable, arising from the above-mentioned jurisdictions.
• Henceforth, all appeals, applications, and proceedings pertaining to the aforementioned jurisdictions shall be instituted before the Ernakulam Bench. Such filings must strictly adhere to the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, in conjunction with all other prevailing statutes, regulatory frameworks, and administrative directives issued periodically.

[Source: Public Notice No. 01 dated 26.03.2026

issued by Assistant Registrar, GSTAT Ernakulam Bench]

GSTAT Lucknow (UP) Bench

• Lucknow Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) has commenced its operations from the following temporary address:

'Ground Floor, A block, Apratyaksh Kar Bhawan, Vibhuti Khand, Gomti Nagar, Lucknow-226010'

• Lucknow Bench shall exercise jurisdiction over the districts of Uttar Pradesh as notified by the Department of Revenue vide notification no S.O. 5063(E) dated 26.11.2024.
• The Bench shall hear appeals filed under the provisions of the Central Goods and Services Tax Act, 2017 and the concerned State Goods and Services Tax Act, as applicable, arising from the above-mentioned jurisdiction.
• GSTAT, Lucknow, has commenced functioning w.e.f. 01.04.2026.

[Source: Public Notice 01/2026 dated 30.03.2026

issued by Joint Registrar, Lucknow Bench, GSTAT]

GSTAT Chennai Bench

GSTAT Chennai bench has commenced functioning w.e.f. 1st April, 2026

• The Chennai Bench shall exercise jurisdiction in the State of Tamil Nadu with respect to the following districts - Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Cuddalore, Villupuram, Kallakurichi, Vellore, Thirupathur, Ranipet and Thiruvannamalai as notified by the Department of Revenue vide notification no S.O. 5063(E) dated 26.11.2024.
• The Bench shall hear appeals / applications filed under the provisions of the Central Goods and Services Tax Act, 2017, integrated Goods and Services Tax Act, 2017 [except the appeals / applications as provided under Section 109(5) of CGST Act, 2017 and relevant notification] and the Tamil Nadu Goods and Services Tax Act, 2017 read with relevant rules framed time to time.
• All appeals, applications and proceedings pertaining to the aforementioned jurisdiction shall be instituted before the Chennai Bench. Such filing must strictly adhere to the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 and all other prevailing statutes, regulatory frameworks and administrative directions issued periodically.
• The procedural framework for the institution of appeals is shall be as per Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025. The official e-filing Advisory, the Procedure Rules, and Presidential orders remain accessible on the GSTAT Portal (https://efiling.gstat.gov.in) within the designated 'NOTICE' section.
• In case of any difficulty faced while filing appeals, applications, cross objections or replies, the parties can contact the toll-free number 1800-103-4782 or raise a ticket via Help Centre at https://efiling.gstat.gov.in.
• The present temporary office address of the GSTAT, Chennai Bench is as follows:

'GSTAT, Chennai Bench, 2nd Floor, Narmada Block, Customs House, 60, Rajaji Salai, Chennai-600001.

[Source: Public Notice (F.No. GSTAT/Chennai/Misc/01/2026 dated 01.04.2026) issued by Joint Registrar, Chennai) Bench, GSTAT]

GSTAT, Agra (UP) Bench

GSTAT, Agra bench has started functioning w.e.f. 06.04.2026, as notified

• The jurisdiction of the GSTAT, Agra Bench as notified by the Department of Revenue vide Notification No S.O.5063(E) dated 26.11.2024 is over the 15 districts of Uttar Pradesh i.e., Agra, Farrukhabad (FatehGarh), Auraiya, Kannauj, Mainpuri, Firozabad, Aligarh, Etah, Kasganj, Mathura, Hathras, Jhansi, Lalitpur, Jalaun, and Etawah.
• The E-Filing Advisory, Rules, and Orders on the GSTAT Portal (https://efiling.gstat.gov.in) are available in 'Notice' section. In case of any difficulty faced while filing appeals/applications, appellants can contact the toll-free number 1800-103-4782 or raise a ticket via the Incident Report Form under 'Help Centre' section at https://efiling.gstat.gov.in.
• Presently Bench is in operation from its temporary address 'Quarter No 3, Type IV, Vaishali Colony, Kar Kunj, Sikandara, Agra-282007.
• The Bench will shift to its permanent address i.e. 3rd Floor Cross Road Mall Plot No. GP-6, Pt. Deen Dayal Upadhyay Puram Sikandara, Agra- 282007, shortly.

[Source: Public Notice 01/2026 dated 06.04.2026

issued by Deputy Registrar, Agra Bench, GSTAT]

Difficulty in filing appeals on the GST portal

• It has come to the notice of GSTN that certain taxpayers are facing difficulties in filing appeals on the GST portal against demand orders wherein the demand amount is reflected as 'NIL,' despite the existence of a dispute regarding tax liability.
• This situation generally arises in cases where the taxpayer has made payment of tax, interest, or penalty (fully or partially) at the stage of issuance of the Show Cause Notice (SCN), without admitting the liability, and the adjudicating authority has subsequently issued a demand order treating such payment as full discharge of the demand without explicitly determining and recording the liability.
• When a demand order is issued by the tax officer, the GST portal creates a Demand ID in the Demand and Collection Register (DCR), also known as the liability ledger.
• In cases where the tax officer issues a demand order with a NIL amount, an entry is created with zero value, indicating that there is no outstanding liability. When the taxpayer attempts to file an appeal application (APL-01) against such a demand order, the portal restricts the filing of the appeal and may display an error such as: 'Disputed amount cannot be more than demand amount itself.'
• Since no liability is reported by the tax officer on the GST portal, the system blocks the taxpayer from filing an appeal.

Nature of Issue:

• It is clarified that:
  • Payment made during the SCN stage, without explicit admission of liability, does not amount to acceptance of the demand.
  • In such cases, the taxpayer retains the right to contest the liability and file an appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
• However, where the adjudication order incorrectly reflects a 'NIL' demand, the taxpayer is unable to exercise this statutory right due to the NIL demand reflected in the system.

Alternate solution:

• In cases where a dispute regarding liability exists but is not captured by the department in the demand order, and payment has been made prior to the issuance of the demand order, the taxpayer is advised to approach the adjudicating authority for issuance of a rectification order.
• The taxpayer may file such rectification requests using the option available on the GST portal. Upon receipt of the rectification order reflecting the correct demand amount, the taxpayer may proceed to file an appeal on the GST portal within the prescribed time limits.

[Source: GSTN Advisory dated 03.04.2026]

Advisory on Pre-deposit for Appeal

GSTN has made 'pre-deposit' field editable for the filing of appeal w.e.f. 6th April, 2026

• Pre-deposit is required to be made at the time of filing of appeal
• Presently, while filing an appeal in Form APL-01 on the GST portal, the pre-deposit percentage is auto-populated as 10% in accordance with Section 107(6) of the CGST Act, 2017, and was previously non-editable.
• Due to this restriction, taxpayers faced difficulties in cases where the pre-deposit had already been made through other means or where the demand amount was incorrectly reflected under the appropriate head, taxpayers were facing difficulties.
• GSTN has now made the pre-deposit field editable at the time of filing the appeal, from April 6th, 2026.
• This allows taxpayers to modify the pre-deposit percentage as applicable to their specific case and calculate and pay the required amount accordingly while submitting the appeal.
• The appellate authority will subsequently verify the correctness of the pre-deposit amount and the mode of payment during the adjudication of the appeal.

(Source: GSTN Advisory dated 10.04.2026)

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