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GSTAT is the last forum where taxpayers can argue on facts by depositing 20% pre-deposit in totality. Thereafter, before the High Court taxpayers may argue on Matters of Law only and by depositing the entire demand in dispute incase stay is not achieved within the time limitation. Hence taxpayers have to put their best foot forward and avoid technical and substantive mistakes. A recent matter, one of the very first, in the case of Manobendra Ghoshal vs. Additional Commissioner of CGST Delhi North & Ors., deals with a jurisdictional error in GSTAT appeal filing. The appellant mistakenly indicated in APL-05 that the matter involved a question reserved for the Principal Bench by citing a 'place of supply' dispute where none existed it seems. The Principal Bench thus held that the case did not fall within the exclusive jurisdiction of the Principal Bench. However, as the GSTAT starts operations, instead of dismissing the appeal, the Principal Bench directed the Registry to transfer the case online to the Delhi State Bench. It emphasized that such errors should not prejudice appellants and that the Registry, GSTN, and NIC must ensure seamless transfer of cases between benches. Any failure in this process would be considered obstruction of justice. However, this ruling clarifies that taxpayers have to file only those appeals before the Principal Bench, which are exclusively under the jurisdiction of the Principal Bench. The following are few pointers which taxpayers may thus keep in mind before filing appeals before the GSTAT:
i. File Fast: Filing shall be treated as 'valid' only on issuance of 'Final Acknowledgement' in Part B of FORM GST APL-02A': While the date of filing would be considered as considered as date of issue of the provisional acknowledgement, yet only on receipt of 'Final Acknowledgement' can the filing be considered as valid. Hence, incase final acknowledgement is not issued for defects, then the appeal would not be admitted. Hence, although the last date for filing appeals before GSTAT is 30th June 2026, taxpayers should not wait until the deadline. Early filing avoids risks of technical delays and ensures smoother processing. Rule 110 (4) of CGST Rules lay down that 'Where the order appealed against is uploaded on the common portal, a final acknowledgement, indicating appeal number, shall be issued 5[in Part B of FORM GST APL-02A] on removal of defects, if any, and the date of issue of the provisional acknowledgement shall be considered as the date of filing of appeal under sub-rule (1):.... Explanation.-For the purposes of this rule, the appeal shall be treated as filed only when the final acknowledgement, indicating the appeal number, is issued.'
ii. In future GSTAT may not condone the delays beyond three months: While the Hon'ble Bombay High Court in the case of The Hongkong and Shanghai Banking Corporation Ltd. Versus State of Maharashtra through the Secretary to the Government Revenue Dept & Ors. - 2026 (2) TMI 1389 - BOMBAY HIGH COURT has held that powers of The GSTAT are wide, yet Section 112 of The CGST Act 2017 binds it condonation powers only for 'three months'. Hence, as seen in the case of First Stage Authorities, in future GSTAT Benches may not condone the delays more than this period. Hence taxpayers are required to be vigilant.
Section 112. lays down: (1) Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal 2[; or the date, as may be notified by the Government, on the recommendations of the Council, for filing appeal before the Appellate Tribunal under this Act, whichever is later.]. (6) The Appellate Tribunal may admit an appeal within three months after the expiry of the period referred to in sub-section (1),....... or permit the filing of a memorandum of cross-objections within forty-five days after the expiry of the period referred to in sub-section (5) if it is satisfied that there was sufficient cause for not presenting it within that period.
iii. Pre-Deposit already paid - There may be a case where a pre-deposit was paid at the First stage. Thereafter the demand is reduced by an extent so that the pre-deposit now even covers the requirement of pre-deposit at the GSTAT stage. For eg. Say the Tax demand at first stage was Rs.1 Crore and pre-deposit of Rs.10 Lakhs was paid. During the Appeal at first stage the demand was reduced from Rs.1 Crore to Rs.50 lakhs. Therefore the pre-deposit of Rs.10 lakhs paid earlier now suffices the 20% requirement at the GSTAT stage. This pre-deposit earlier paid should ideally be adjusted at the filing stage and no new pre-deposit should be required.
iv. Facts, Data, and Evidence (FDE Approach) The strength of an appeal lies in facts and documentary evidence. Data must be backed by proper proof, ensuring that every claim is substantiated. Sometimes taxpayers and professionals too, commit the error of providing lots of facts and data and do not frame the matter from the evidence point of view.
v. Flow and Case Summary Arguments must follow a logical flow, with each issue distinctly framed. A concise yet comprehensive case summary, supported by a chronology of events, helps the Tribunal understand the dispute clearly.
vi. List of Dates Where multiple dates are involved-such as filing of returns, ITC availment, vendor compliance, or cancellations-a structured list of dates should be annexed for clarity.
vii. Penalty and Doctrines Even if demands are confirmed, penalties can be argued for relaxation. Doctrines such as impossibility of compliance or prejudiced mindset may be invoked to strengthen the case.
viii. Limitation Periods Sections 73 and 74 require careful year wise examination of limitation. If a show cause notice or order is time barred, it becomes a strong ground for challenge. Even a conversion of a Section 74 Order to a Section 73 Order provides a 40% relief from the demand considering reduction of the period of demand from 5 years to 3 years.
ix. Rule of Law under Section 75 All evidence must be given due cognizance. If certain documents are ignored, this must be brought to the Tribunal's attention.
x. Additional Evidence will be admissible only incase sufficient cause is shown: Appeals must be filed online in Form APL 05. Additional evidence is admissible only if sufficient cause is shown, such as refusal by the adjudicating authority or lack of opportunity earlier.
xi. POS Issues and Cross Objections Matters involving place of supply (POS) are heard only at the Principal Bench. Taxpayers must also file cross objections in Form APL 06 when the Department files appeals.
xii. Tribunal Powers and Strategy GSTAT may confirm, modify, annul, or remand orders. Appellants must strategize whether to bunch cases together or distinguish them individually. After GSTAT's decision, barring a stay, the demand becomes payable.
xiii. Affidavits and Applications Affidavits must be properly attested with seal and date. Interlocutory applications such as condonation of delay must be filed in Form GSTAT 01, accompanied by affidavits where required.
xiv. Memorandum of Appearance Form 04 must be submitted with a valid vakalatnama or authorization letter. In case of change of representative, written consent of the previous representative is necessary.
xv. Judicial Precedents and Circulars Circulars can be challenged as they are not binding on taxpayers, as upheld in Vatika Township. Supreme Court rulings like Suncraft Energy and High Court decisions such as LGW Industries provide strong precedents, especially in ITC disputes, and should be invoked.
xvi. Reliance on AI Artificial intelligence tools may assist in drafting, but they should never be relied upon blindly. Every output must be cross checked against statutory provisions and factual records before submission.