stay of demand

[SUSHIL BANSAL]

Dear experts,

as per circular No. 29/2023 dated 31.07.2023, now no need to deposit 10% of tax for filing appeals. In such a situation the demand will be treated as auto stayed or we need to take stay.

Further 10% tax deposit condition is not for penalty ?

AI Summary

Pre-deposit requirement for GST appeals affects stay of balance demand; reference procedural notification in appeal memo.
The notification removing the prescribed pre-deposit for specified TRAN-1/2 appeals does not by itself create an automatic stay on the balance disputed tax; historically, payment of a pre-deposit made the remaining disputed tax non-recoverable and the portal may flag balances as non-recoverable when an appeal is admitted, but such FAQ descriptions lack statutory force. Pre-deposit covers disputed tax only, not penalty or fines, and practitioners should reference the notification serial in the appeal memorandum and confirm office practice with the Superintendent (Appeals).