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GST · Notices & appealsFirst appeal under GST Section 107: filing and pre-deposit
An adverse GST order is not the end. Section 107 allows a first appeal to the Appellate Authority within three months, with a pre-deposit of 10% of disputed tax – which also stays recovery of the rest. Here is the process, documents and practical tips.
Section 107 of the CGST Act gives a right of first appeal to the Appellate Authority (Joint/Additional Commissioner (Appeals) or Commissioner (Appeals)) against any decision or order of an adjudicating authority.
Key rules
| Point | Rule |
|---|---|
| Who can appeal | Any person aggrieved by an order |
| Time limit | 3 months from communication of order (+1 month on sufficient cause) |
| Form | APL-01 online; certified copy within 7 days (now largely dispensed with for orders uploaded on portal) |
| Pre-deposit | 100% of admitted tax, interest, fine, fee, penalty + 10% of disputed tax (max ₹20 crore CGST + ₹20 crore SGST) |
| Stay | Recovery of balance deemed stayed on pre-deposit |
| Decision | Within 1 year where possible |
| Next appeal | GSTAT under Section 112 |
Step-by-step
- Download the order (DRC-07 summary and detailed order) and note communication date.
- Compute pre-deposit: admitted amount + 10% of disputed tax.
- Pay through the electronic cash ledger (preferable).
- Prepare APL-01: statement of facts, grounds of appeal, relief sought.
- Attach documents: SCN, reply, hearing records, order, evidence, case law.
- File online with DSC/EVC; provisional acknowledgement (APL-02).
- Attend the hearing; file written submissions.
- Order in APL-04.
Worked example
Example: Delta Polyplast receives an order dated 10 August 2026 confirming tax of ₹12,00,000, interest ₹3,10,000 and penalty ₹1,20,000 for FY 2021-22. RAA admits ₹1,00,000 of tax (a genuine error) and disputes the rest.
| Item | Amount |
|---|---|
| Admitted tax | ₹1,00,000 (100%) + interest on it |
| Disputed tax | ₹11,00,000 |
| Pre-deposit 10% of disputed tax | ₹1,10,000 |
| Total pre-deposit (excluding interest on admitted tax) | ₹2,10,000 |
| Last date for appeal | 10 November 2026 (3 months) |
| With condonation | up to 10 December 2026 |
On filing with pre-deposit, recovery of the remaining ₹10.9 lakh tax plus related interest and penalty is stayed. If the appeal fails, RAA can go to GSTAT with a further 10% pre-deposit.
Drafting grounds of appeal
- Facts: brief chronology.
- Grounds: numbered, covering law, facts, limitation, natural justice (no hearing given), non-consideration of reply, wrong invocation of Section 74 etc.
- Relief: set aside the order; drop penalty; any other relief.
- Include all possible grounds – additional grounds need permission later.
Practical tips
- Do not wait for the last week; the portal slows near deadlines.
- If the order was passed without a hearing, highlight violation of Section 75(4).
- Consider filing a rectification under Section 161 for apparent errors, but do not let it delay the appeal deadline.
- Keep track of APL-02 and hearing notices by email.
Common mistakes
- Computing pre-deposit on penalty in tax demand cases (only tax is relevant, plus penalty-only cases).
- Paying pre-deposit from ITC where contested.
- Missing the 3-month window.
- Vague grounds.
Key takeaway
A first appeal must be filed within 3 months (+1) with 10% pre-deposit of disputed tax, which stays recovery. Prepare comprehensive grounds and documents. Our GST appeals team represents clients before Appellate Authorities and GSTAT.
Official references
Provisions discussed (summaries in our Law Library):
- CGST Act, 2017 – Section 107: Appeals to Appellate Authority
Official sources to verify the current text, notifications and circulars:
Frequently asked questions
What is the time limit for a GST first appeal?
Three months from the date of communication of the order, extendable by one month if the Appellate Authority is satisfied there was sufficient cause for delay.
How much pre-deposit is required?
100% of the admitted amount plus 10% of the disputed tax, subject to a maximum of ₹20 crore each under CGST and SGST (and ₹40 crore IGST). For penalty-only orders, 10% of penalty.
Does filing an appeal stop recovery?
Yes. Once the pre-deposit is paid and the appeal filed, recovery of the balance is deemed stayed until disposal (Section 107(7)).
Can the pre-deposit be paid from the credit ledger?
The law and courts differ; the safer course is to pay pre-deposit from the electronic cash ledger, as several High Courts have held either way and CBIC has clarified certain aspects.
Can the department appeal too?
Yes. The department can appeal against orders within six months, after review by the Commissioner.
Can new evidence be filed at the appeal stage?
Additional evidence is allowed only in limited circumstances (Rule 112), such as where the officer refused to admit evidence or you were prevented by sufficient cause.
Is the 10% pre-deposit refunded if I win?
Yes, with interest, after the appeal is decided in your favour.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.