Pre-deposit under GST appeals reduced to ten per cent after statutory amendment, with compliance time extended.

The amended pre-deposit requirement under Section 112 of the Central Goods and Services Tax Act was applied, as the statutory substitution of "twenty per cent" with "ten per cent" meant the earlier interim direction stood modified accordingly. The Calcutta HC reduced the deposit condition from 20 per cent to 10 per cent, extended the time for compliance by two weeks, and directed that the earlier interim protection would continue upon such payment.

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Issues: Whether the earlier direction requiring deposit of 20 per cent under the interim order should be modified to 10 per cent in view of the amendment to Section 112(8) of the Central Goods and Services Tax Act, 2017 by Section 143 of the Finance (No. 2) Act, 2024, and whether time for compliance should be extended.

Analysis: The amendment substituted the words "twenty percent" with "ten per cent" in clause (b)(i) of Section 112 of the Central Goods and Services Tax Act, 2017. In view of that statutory change, the earlier deposit direction was treated as requiring deposit of 10 per cent instead of 20 per cent. Time to comply was extended by two weeks, and the earlier interim protection was directed to continue upon such payment.

Conclusion: The modification application was allowed to the extent that the pre-deposit condition was reduced from 20 per cent to 10 per cent and the time for compliance was extended.

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