GST Appeal Filing Process – Step-by-Step Guide with Grounds & Stay Petition Format

Introduction

Under GST law, whenever a taxpayer receives an adverse order or demand, the right to file an appeal under Section 107 of the CGST Act, 2017 is a statutory remedy. However, many taxpayers either miss the time limit or file appeals incorrectly, leading to rejection.

This article explains:

• When GST appeal can be filed

• Time limits and pre-deposit requirements

• Step-by-step online filing process

• Grounds of appeal

• Stay petition format against GST demand

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What is GST Appeal?

GST appeal is a legal remedy available to a taxpayer against:

• Demand orders (DRC-07)

• Penalty orders

• Cancellation of registration

• Rejection of refund

• Any adjudication order passed by GST authorities

📌 Appeals are governed by Section 107 of CGST Act, 2017.

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Time Limit for Filing GST Appeal

As per Section 107(1):

• Appeal must be filed within 3 months from the date of communication of order.

Condonation of Delay

• Additional 1 month may be allowed if sufficient cause is shown.

🚫 Delay beyond this period → Appeal becomes time-barred.

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Pre-Deposit Requirement for GST Appeal

As per Section 107(6):

• 100% of admitted tax, plus

• 10% of disputed tax

📌 No pre-deposit required for penalty only cases.

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Documents Required for GST Appeal

1. Copy of impugned order

2. GST DRC-07 (if issued)

3. Statement of facts

4. Grounds of appeal

5. Proof of pre-deposit

6. Authorization letter

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Step-by-Step GST Appeal Filing Process (Online)

Step 1: Login to GST Portal

Go to → Services → User Services → My Applications → Appeal to Appellate Authority

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Step 2: Select Order Type

• Choose the relevant order

• Confirm order details

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Step 3: Statement of Facts

Explain:

• Background of the case

• Nature of business

• Brief facts leading to dispute

📌 Keep it factual, not argumentative.

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Step 4: Grounds of Appeal

This is the most important section.

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Strong Grounds of Appeal (Ready to Use)

You may use the following grounds as applicable:

1. Order passed in violation of principles of natural justice

2. No proper Show Cause Notice was issued

3. No opportunity of personal hearing provided (Section 75(4))

4. Order passed without proper reasoning

5. Incorrect interpretation of law

6. Demand is time-barred

7. Penalty imposed mechanically

📌 Grounds should be legal, not emotional.

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Step 5: Payment of Pre-Deposit

• Pay 10% disputed tax online

• Upload challan

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Step 6: Verification & Submission

• Verify using DSC / EVC

• ARN generated → Appeal filed successfully

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Stay of Demand During Appeal

Filing appeal does not automatically stay recovery.

👉 Therefore, Stay Petition is crucial.

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Stay Petition Against GST Demand – Draft Format

BEFORE THE APPELLATE AUTHORITY UNDER GST

Subject: Application for Stay of Recovery

The applicant has filed an appeal against Order No. ____ dated ____. The demand raised is illegal and disputed on strong legal grounds. Immediate recovery will cause irreparable loss and hardship.

The applicant has already complied with Section 107(6) by making the mandatory pre-deposit.

Prayer:
It is respectfully prayed that recovery proceedings may kindly be stayed till disposal of appeal.

Place:
Date:
Signature

📌 Attach this as a separate PDF in appeal documents.

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Personal Hearing in GST Appeal

As per Section 75(4):

• Personal hearing is mandatory if requested.

• Appellate authority must pass speaking order.

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Common Mistakes to Avoid

❌ Filing appeal without grounds
❌ Missing time limit
❌ Not filing stay petition
❌ Weak legal drafting

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Important Case Laws on GST Appeal

• Orders passed without hearing are invalid

• Mechanical confirmation of demand is illegal

• Penalty cannot be imposed without mens rea (Section 126)

📌 Courts favor taxpayers when procedure is violated.

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Frequently Asked Questions (FAQs)

Q1. Can GST appeal be filed without paying tax?

Only admitted tax + 10% disputed tax is mandatory.

Q2. Can recovery continue during appeal?

Yes, unless stay is granted.

Q3. Is personal hearing compulsory?

Yes, if requested.

Q4. Can appeal be withdrawn later?

Yes, before final order.

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Conclusion

Filing a GST appeal properly with strong grounds and stay petition is essential to protect taxpayers from coercive recovery. A well-drafted appeal significantly improves chances of relief.

📌 Professional drafting makes a real difference in appeal outcomes.

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Author Note

Written by Team tax Consultant with experience in GST appeals, litigation & compliance.