TaxTMI 
TaxTMI 
Demand of GST with interest and penalty confirmed by issuing Order – In – Original. The taxpayer will be filing an appeal against the same with Commissioner – Appeals. Can he pay only the tax demand without paying interest and penalty ‘Strictly Under Protest’ while filing the appeal to avoid the accumulation of interest figure if the decision goes against him?
Appeal to Commissioner Appeals
09 Feb 2023 
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Pre-deposit requirement: increase pre-deposit to prevent interest accrual while appealing a GST demand and consider refund route if successful.
Filing an appeal operates as protest but GST lacks a specific provision for payments made "under protest," so paying only the tax may not stop interest and penalty accrual. The appeal regime requires payment of admitted amounts and a minimum pre-deposit; taxpayers may increase the pre-deposit above the minimum to avoid further interest and to ease refund recovery if the appeal succeeds, though this can invite departmental arguments of voluntary payment and may require separate refund proceedings. (AI Summary)
Filing an appeal operates as protest but GST lacks a specific provision for payments made "under protest," so paying only the tax may not stop interest and penalty accrual. The appeal regime requires payment of admitted amounts and a minimum pre-deposit; taxpayers may increase the pre-deposit above the minimum to avoid further interest and to ease refund recovery if the appeal succeeds, though this can invite departmental arguments of voluntary payment and may require separate refund proceedings. (AI Summary)