Section 107 of the Central Goods and Services Tax Act, 2017 deals with appeals to the Appellate Authority against decisions or orders passed by an adjudicating authority under the GST law.
It is one of the most important provisions in the GST appellate framework because it gives an aggrieved person a statutory remedy against an adjudication order. Section 107 also provides a separate mechanism through which the Commissioner can review an adjudicating authority’s order and direct a subordinate officer to apply to the Appellate Authority on specified points.
The provision covers the time limit for filing an appeal, the amount that must be paid before an appeal can be filed, the stay of recovery after the prescribed payment, hearing rights, additional grounds, the powers of the Appellate Authority, the time for disposal and the finality of the appellate order. The current Section 107 also contains amendments relating to Section 74A and the reduced maximum pre-deposit of ₹20 crore for an appeal before the Appellate Authority.
What Is Section 107 of the CGST Act?
Section 107 is titled “Appeals to Appellate Authority.”
The provision primarily deals with two types of appellate action:
- Appeal by a person aggrieved by an adjudication order under Section 107(1); and
- Application by an authorised officer pursuant to a review direction of the Commissioner under Section 107(2).
An appeal under Section 107(1) is ordinarily required to be filed within three months from the date on which the decision or order is communicated to the person. The Commissioner-directed application under Section 107(2) has a period of six months from communication of the decision or order.
Why Is Section 107 Important?
GST adjudication can result in an order determining:
- tax;
- interest;
- penalty;
- late fee;
- fine;
- input tax credit;
- refund;
- confiscation-related consequences; or
- other liabilities or rights under the GST law.
If a person is aggrieved by an order passed by the adjudicating authority, Section 107 provides the first statutory appellate remedy within the GST framework.
The Appellate Authority can examine the challenged order and, after following the statutory procedure, may confirm, modify or annul the decision or order appealed against.
Who Can File an Appeal Under Section 107(1)?
Section 107(1) allows any person aggrieved by a decision or order passed by an adjudicating authority under:
- the CGST Act;
- the relevant State GST Act; or
- the Union Territory GST Act,
to appeal to the prescribed Appellate Authority.
The expression “person aggrieved” is important because the provision is not restricted only to the registered taxpayer who was the subject of the order.
The particular facts and the nature of the order determine whether the person has a statutory right of appeal.
What Is an Adjudicating Authority?
For Section 107, the order must be one passed by an adjudicating authority.
Section 2(4) of the CGST Act defines “adjudicating authority” as an authority appointed or authorised to pass an order or decision under the Act, subject to specified exclusions.
The definition excludes certain bodies, including:
- the Central Board of Indirect Taxes and Customs;
- the Revisional Authority;
- the Authority for Advance Ruling;
- the Appellate Authority for Advance Ruling;
- the Appellate Authority;
- the Appellate Tribunal; and
- the Authority referred to in Section 171(2).
Therefore, not every GST decision automatically falls within Section 107(1). The nature and statutory source of the order must be examined.
Time Limit for Filing an Appeal – Section 107(1)
An appeal under Section 107(1) must generally be filed within three months from the date on which the decision or order is communicated to the aggrieved person.
The period is therefore linked to communication of the order, rather than simply the date printed on the order.
Example
Suppose a GST adjudication order is dated 1 September and is communicated to the taxpayer on 10 September.
The three-month appellate period is calculated with reference to the statutory communication date.
Therefore, taxpayers should maintain evidence showing when the order was actually communicated or made available to them.
Can the Three-Month Period Be Extended?
Yes, but only within the statutory limit provided by Section 107(4).
If the Appellate Authority is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the normal three-month period, it may allow the appeal to be presented within a further period of one month.
Therefore, Section 107 provides:
Normal period = 3 months
Additional period that may be allowed for sufficient cause = 1 month
This does not create an unlimited power to condone delay.
Meaning of Sufficient Cause
Section 107 does not provide an exhaustive statutory list of circumstances that constitute sufficient cause.
The Appellate Authority has to consider the circumstances of the particular case.
A taxpayer seeking condonation should explain the reason for the delay and provide supporting evidence wherever appropriate.
Examples may include circumstances such as:
- serious procedural difficulty;
- circumstances preventing timely filing;
- technical issues supported by appropriate records; or
- other circumstances that genuinely prevented timely presentation.
The existence of a delay does not itself guarantee condonation.
Appeal by the Department – Section 107(2)
Section 107 also provides a mechanism for departmental review.
The Commissioner may, either:
- on his own motion; or
- on a request from the Commissioner of State tax or Commissioner of Union territory tax,
call for and examine the record of proceedings in which an adjudicating authority has passed a decision or order.
The purpose is to satisfy himself regarding the legality or propriety of the decision or order.
After examining the record, the Commissioner may direct a subordinate officer to apply to the Appellate Authority for determination of specified points arising from the decision or order.
Six-Month Period for Departmental Application
Where the Commissioner directs an authorised officer to make an application under Section 107(2), the application must be made to the Appellate Authority within six months from the date on which the decision or order was communicated.
Thus, the basic timelines are:
| Type of proceeding | Statutory period |
|---|---|
| Appeal by aggrieved person | 3 months |
| Further period that may be allowed for sufficient cause | 1 month |
| Departmental application under Section 107(2) | 6 months |
Section 107(3) – Departmental Application Treated as an Appeal
When an authorised officer makes an application pursuant to an order under Section 107(2), the Appellate Authority deals with it as if it were an appeal against the adjudicating authority’s decision or order.
The authorised officer is treated as the appellant for this purpose.
The provisions of the CGST Act relating to appeals apply to such an application.
This gives the departmental review mechanism a structured appellate procedure rather than creating an entirely separate type of proceeding.
Section 107(5) – Form and Verification
Every appeal under Section 107 must be filed in the prescribed form and verified in the prescribed manner.
For an appeal under Section 107(1), Rule 108 of the CGST Rules provides for FORM GST APL-01.
For a departmental application under Section 107(2), Rule 109 provides for FORM GST APL-03.
The appeal should therefore contain the prescribed details, grounds and verification and should be accompanied by the required supporting documents.
FORM GST APL-01
FORM GST APL-01 is the prescribed form for an appeal to the Appellate Authority under Section 107(1).
The appeal generally includes information such as:
- details of the appellant;
- details of the order being challenged;
- relevant dates;
- grounds of appeal;
- statement of facts;
- relief sought; and
- verification.
The procedural requirements for filing and acknowledgement are governed by Rule 108.
FORM GST APL-02
FORM GST APL-02 is used for the final acknowledgement of the appeal and indicates the appeal number.
The current Rule 108 framework provides that where the order appealed against is uploaded on the common portal, the final acknowledgement is issued and the date of provisional acknowledgement is treated as the filing date.
Where the order is not uploaded on the common portal, the appellant is required to submit a self-certified copy within the specified seven-day period; otherwise, the date of submission of that copy can become the relevant filing date.
This makes it important to preserve the acknowledgement generated after filing the appeal.
Pre-Deposit Requirement Under Section 107(6)
Section 107(6) contains an important condition for filing an appeal.
An appellant must pay:
- in full, the amount of tax, interest, fine, fee and penalty arising from the impugned order that the appellant admits; and
- 10% of the remaining amount of tax in dispute, subject to a maximum of ₹20 crore.
The maximum amount was reduced from ₹25 crore to ₹20 crore through the Finance (No. 2) Act, 2024, with effect from 1 November 2024.
Simple Example
Suppose an order determines:
- Tax: ₹10 crore
- Interest: ₹1 crore
- Penalty: ₹1 crore
The taxpayer admits tax of ₹2 crore but disputes the remaining ₹8 crore.
The admitted amount of tax, interest, fine, fee and penalty covered by Section 107(6)(a) must be paid in full.
In addition, the prescribed 10% of the remaining disputed tax amount is required under Section 107(6)(b), subject to the statutory maximum.
The pre-deposit is therefore linked specifically to the remaining amount of tax in dispute, not to the entire demand including every component.
Maximum Pre-Deposit of ₹20 Crore
The current maximum under Section 107(6)(b) is ₹20 crore.
Therefore, even where the disputed tax amount is extremely large, the pre-deposit required under clause (b) is capped at ₹20 crore.
The corresponding statutory amendment reduced the maximum from ₹25 crore to ₹20 crore.
Penalty-Only Orders
The law also contains a specific pre-deposit requirement for an order demanding penalty without involving a demand of tax.
From 1 October 2025, Section 107(6) provides that where an order demands penalty without involving demand of tax, an appeal cannot be filed unless the appellant has paid 10% of the penalty.
This is an important change from the earlier framework.
Therefore, taxpayers should not assume that a tax demand must always exist before a pre-deposit is required for a Section 107 appeal.
Section 107 and Orders Under Section 129(3)
Section 107 also contains a special proviso concerning an order under Section 129(3).
The provision requires payment of 25% of the penalty before an appeal can be filed against such an order.
This is different from the ordinary 10% pre-deposit applicable to the remaining disputed tax under Section 107(6)(b).
Therefore, the nature of the order should be identified before calculating the amount required for filing the appeal.
Effect of Pre-Deposit – Stay of Recovery
Section 107(7) provides an important consequence of making the payment required under Section 107(6).
Once the appellant has paid the amount required under Section 107(6), recovery proceedings for the balance amount are deemed to be stayed.
This means that the taxpayer does not generally need a separate stay order merely to obtain the statutory stay of recovery for the balance, provided the Section 107(6) requirement has been satisfied.
Example of Statutory Stay
Suppose:
- disputed tax = ₹5 crore;
- applicable pre-deposit = ₹50 lakh.
After the taxpayer makes the statutory payment required under Section 107(6), recovery proceedings for the remaining balance are deemed to be stayed under Section 107(7).
The stay operates according to the statutory provision and should not be confused with a final decision on the merits of the appeal.
Section 107(8) – Right to Be Heard
The Appellate Authority must give the appellant an opportunity of being heard.
This is an important procedural safeguard because the appeal can affect tax, interest, penalty, refund, ITC and other statutory consequences.
The appellant should therefore be given an opportunity to present the grounds and supporting material in accordance with the applicable procedure.
Section 107(9) – Adjournment
The Appellate Authority may grant time to the parties and adjourn the hearing where sufficient cause is shown.
The reasons for granting the adjournment must be recorded in writing.
However, the statutory proviso states that no more than three adjournments may be granted to a party during the hearing of an appeal.
This provision is intended to balance procedural fairness with timely disposal of appeals.
Section 107(10) – Additional Grounds of Appeal
The Appellate Authority may allow an appellant to add a ground of appeal that was not originally specified in the grounds of appeal.
However, this is subject to the Appellate Authority being satisfied that the omission was not wilful or unreasonable.
This provision gives limited flexibility where an important ground was unintentionally omitted.
It does not mean that an appellant can freely introduce any new ground at any stage without explanation.
Section 107(11) – Powers of the Appellate Authority
After making any further inquiry that may be necessary, the Appellate Authority may pass an order that it considers just and proper.
The order may:
- confirm the decision or order;
- modify the decision or order; or
- annul the decision or order.
However, the Appellate Authority cannot remand the case back to the adjudicating authority that passed the original decision or order under Section 107(11).
This is a significant difference between the statutory powers of the Appellate Authority and some other appellate forums.
Enhancement of Fee, Penalty or Fine
The Appellate Authority can consider enhancement in the circumstances permitted by the Act.
However, where it proposes to:
- enhance any fee;
- enhance any penalty;
- enhance a fine in lieu of confiscation;
- confiscate goods of greater value; or
- reduce the amount of refund or input tax credit,
the appellant must first be given a reasonable opportunity of showing cause against the proposed order.
This provides an important hearing safeguard before an adverse enhancement is made.
Tax Demand During Appeal Proceedings
Section 107(11) contains another important safeguard.
If the Appellate Authority is of the opinion that:
- tax has not been paid;
- tax has been short-paid;
- tax has been erroneously refunded; or
- input tax credit has been wrongly availed or utilised,
it cannot pass an order requiring the appellant to pay such tax or ITC without:
- giving the appellant a notice to show cause against the proposed order; and
- passing the order within the applicable time limit under Section 73, Section 74 or Section 74A, as applicable.
The reference to Section 74A reflects the later amendment to the GST demand framework.
Section 107(12) – Contents of Appellate Order
The order disposing of the appeal must be in writing.
It must state:
- the points for determination;
- the decision on those points; and
- the reasons for the decision.
This is important because an appellate order should not merely state the final result. It must explain the issues considered and the reasoning supporting the decision.
Section 107(13) – Time for Disposal of Appeal
The Appellate Authority should, where it is possible to do so, hear and decide every appeal within one year from the date on which it is filed.
The phrase “where it is possible to do so” is important.
The provision sets a statutory objective for disposal but does not simply provide that every appeal automatically becomes invalid if it is not decided within one year.
If issuance of the order is stayed by an order of a court or Tribunal, the period of such stay is excluded while calculating the one-year period.
Section 107(14) – Communication of Order
After disposing of the appeal, the Appellate Authority must communicate its order to:
- the appellant;
- the respondent; and
- the adjudicating authority.
Communication of the order is important because further appellate remedies and compliance obligations may depend on the date of communication.
Section 107(15) – Copy to Tax Authorities
A copy of the order must also be sent to:
- the jurisdictional Commissioner or authority designated by him;
- the jurisdictional Commissioner of State tax; or
- the Commissioner of Union Territory Tax, as applicable.
This ensures that the relevant tax administration receives the appellate decision.
Section 107(16) – Finality of Appellate Order
Every order passed under Section 107 is, subject to the further statutory remedies under Sections:
- 108;
- 113;
- 117; and
- 118,
final and binding on the parties.
This means that a Section 107 order is not necessarily the end of all appellate remedies.
Depending on the nature of the dispute and statutory requirements, further proceedings may be available before the appropriate forum.
Section 107 and Section 108
Section 108 deals with the powers of the Revisional Authority.
Therefore, although Section 107(16) states that an appellate order is final and binding subject to specified provisions, the statute separately provides a revision mechanism under Section 108.
The relationship between the two provisions should be considered when examining whether further departmental proceedings are legally available.
Section 107 and Section 112
Section 112 deals with appeals to the Appellate Tribunal.
A person aggrieved by an order passed under Section 107 or Section 108 may, subject to the statutory conditions and applicable timelines, appeal to the GST Appellate Tribunal.
Therefore, Section 107 generally represents an important stage before an appeal can proceed to the Tribunal.
Section 107 and Section 117
Section 117 provides for appeals to the High Court in cases involving substantial questions of law from orders of the Appellate Tribunal.
Therefore, the broader appellate structure can be understood as:
Adjudicating Authority → Appellate Authority → Appellate Tribunal → High Court → Supreme Court
The exact availability of each further appeal depends on the statutory conditions applicable to the particular case.
Section 107 and Section 118
Section 118 deals with appeals to the Supreme Court in specified cases.
Therefore, Section 107 is the first major appellate stage in the general GST adjudication hierarchy.
Section 107 and Advance Ruling Appeals
Section 107 should not be confused with the advance ruling appeal mechanism under Section 100.
Section 100
Section 100 deals with appeals against an advance ruling pronounced under Section 98.
Section 107
Section 107 deals with appeals against decisions or orders passed by an adjudicating authority.
Therefore, an AAR appeal is not simply a Section 107 appeal.
The two provisions belong to different parts of the GST appellate framework.
Section 107 and Section 128A
Section 128A was introduced for a specific waiver framework relating to interest and penalty for eligible Section 73 demands for specified financial years, subject to statutory conditions.
Where an appeal is pending and the taxpayer seeks to avail a statutory benefit under Section 128A, the interaction between the appeal and the waiver mechanism must be examined carefully.
Section 128A also contains specific provisions regarding pending appeals and the consequences of concluding proceedings under that section.
Therefore, taxpayers dealing with eligible historical Section 73 demands should not consider Section 107 in isolation.
Practical Example – Appeal Against Tax Demand
Suppose a registered taxpayer receives an adjudication order determining:
- tax: ₹3 crore;
- interest: ₹60 lakh; and
- penalty: ₹30 lakh.
The taxpayer disputes the tax determination.
The taxpayer may file an appeal under Section 107(1), subject to the statutory three-month period, prescribed form, pre-deposit requirements and other conditions.
The amount admitted by the taxpayer must be paid as required by Section 107(6)(a), and the applicable percentage of disputed tax must be paid under Section 107(6)(b).
After satisfying the pre-deposit requirement, recovery of the balance is deemed stayed under Section 107(7).
Practical Example – Departmental Review
Suppose an adjudicating authority passes an order reducing a tax demand.
The Commissioner examines the record and believes that the order may not be legally correct.
The Commissioner may call for and examine the record under Section 107(2).
If the statutory conditions are satisfied, the Commissioner can direct an authorised subordinate officer to apply to the Appellate Authority for determination of specified points.
The application is then treated as an appeal under Section 107(3).
Practical Example – Delay in Filing
Suppose an order is communicated to a taxpayer and the taxpayer does not file the appeal within the normal three-month period.
If the taxpayer was prevented by sufficient cause from presenting the appeal on time, the Appellate Authority may allow the appeal to be presented within the additional one-month period permitted by Section 107(4).
The taxpayer should provide a clear explanation and supporting evidence for the delay.
Practical Example – Additional Ground
Suppose a taxpayer files an appeal but unintentionally omits an important legal ground.
During the hearing, the taxpayer seeks permission to add that ground.
Section 107(10) allows the Appellate Authority to permit the additional ground if it is satisfied that the omission was not wilful or unreasonable.
Practical Example – Proposed Enhancement
Suppose the Appellate Authority, while hearing an appeal, considers increasing the penalty imposed by the adjudicating authority.
The authority cannot simply enhance the penalty without following the statutory safeguard.
The appellant must be given a reasonable opportunity to show cause against the proposed enhancement.
This gives the appellant an opportunity to explain why the proposed adverse change should not be made.
Practical Example – Reduction of Refund
Suppose an adjudication order grants a refund and the matter reaches the Appellate Authority.
If the Appellate Authority proposes to reduce the refund, the appellant must be given a reasonable opportunity to show cause against the proposed reduction under Section 107(11).
Additional Evidence Before the Appellate Authority
Rule 112 governs the production of additional evidence before the Appellate Authority or Appellate Tribunal.
As a general rule, an appellant is not allowed to introduce evidence that was not produced before the adjudicating authority, subject to specified exceptions.
The exceptions include situations where:
- the lower authority refused to admit evidence that should have been admitted;
- the appellant was prevented by sufficient cause from producing evidence;
- relevant evidence could not be produced for sufficient cause; or
- the order was passed without giving sufficient opportunity to produce relevant evidence.
Where additional evidence is admitted, the applicable procedural safeguards must also be followed.
Therefore, taxpayers should generally present their complete factual and documentary case during the original adjudication proceedings itself.
Important Documents for a Section 107 Appeal
Depending on the case, an appellant may need to maintain:
- copy of the adjudication order;
- statement of facts;
- grounds of appeal;
- tax computation;
- pre-deposit/payment proof;
- relevant invoices;
- contracts and agreements;
- return records;
- reconciliation statements;
- books of account;
- supporting correspondence;
- previous submissions;
- evidence relied upon before the adjudicating authority; and
- any other document relevant to the grounds of appeal.
The exact documents depend on the nature of the dispute.
Common Issues to Check Before Filing an Appeal
Before filing a Section 107 appeal, a taxpayer should check:
1. Date of Communication
Identify the date on which the order was communicated.
2. Limitation
Calculate the three-month period carefully.
3. Condonation
If there is a delay, determine whether sufficient cause exists and whether the appeal is still within the additional one-month period permitted under Section 107(4).
4. Pre-Deposit
Calculate the admitted liability and disputed tax correctly.
5. Correct Form
Use the applicable prescribed form, generally FORM GST APL-01 for an appeal under Section 107(1).
6. Grounds of Appeal
Clearly identify each ground and explain the factual and legal basis.
7. Supporting Evidence
Attach or preserve relevant documentary evidence.
8. Order Challenged
Ensure that the correct adjudication order is identified.
9. Further Remedies
Understand whether further appeal or revision may be available after the Appellate Authority’s order.
Section 107 – Important Timeline
The principal statutory timeline can be summarised as follows:
| Stage | Time limit |
|---|---|
| Taxpayer/person files appeal under Section 107(1) | 3 months from communication |
| Additional period that may be allowed for sufficient cause | 1 month |
| Commissioner-directed application under Section 107(2) | 6 months from communication |
| Appellate Authority should, where possible, decide appeal | 1 year from filing |
| Maximum pre-deposit under Section 107(6)(b) | ₹20 crore |
The one-year period for disposal is subject to the statutory wording “where it is possible to do so,” and court/Tribunal stay periods are excluded as specified in Section 107(13).
Section 107 – Key Features at a Glance
| Provision | Main subject |
|---|---|
| Section 107(1) | Appeal by an aggrieved person |
| Section 107(2) | Commissioner review and direction for departmental application |
| Section 107(3) | Departmental application treated as an appeal |
| Section 107(4) | Condonation of delay within additional one month |
| Section 107(5) | Prescribed form and verification |
| Section 107(6) | Pre-deposit requirements |
| Section 107(7) | Stay of recovery of balance |
| Section 107(8) | Opportunity of hearing |
| Section 107(9) | Adjournments |
| Section 107(10) | Addition of grounds of appeal |
| Section 107(11) | Powers of Appellate Authority |
| Section 107(12) | Contents of appellate order |
| Section 107(13) | One-year disposal target |
| Section 107(14) | Communication of appellate order |
| Section 107(15) | Copies to tax authorities |
| Section 107(16) | Finality subject to further statutory remedies |
Difference Between Section 107 and Section 108
| Basis | Section 107 | Section 108 |
|---|---|---|
| Main subject | Appeal to Appellate Authority | Revision by Revisional Authority |
| Initiation | Generally by aggrieved person; departmental application can also arise under Section 107(2) | Revisional Authority exercises statutory revision power |
| Forum | Appellate Authority | Revisional Authority |
| Main purpose | Review an adjudication order through appeal | Examine legality/propriety through revision |
| Further remedy | Subject to applicable provisions including Section 112 | Also subject to further statutory remedies |
Both provisions are part of Chapter XVIII, but they operate through different mechanisms.
Difference Between Section 107 and Section 112
| Basis | Section 107 | Section 112 |
|---|---|---|
| Forum | Appellate Authority | Appellate Tribunal |
| Appeal against | Adjudicating authority order | Order under Section 107 or Section 108 |
| Main pre-deposit | 10% of remaining disputed tax, subject to ₹20 crore, plus admitted amount | Additional statutory pre-deposit under Section 112 |
| Procedure | Section 107 | Section 112 |
Section 112 therefore generally represents the next appellate stage after Section 107.
Key Points to Remember About Section 107
The major points of Section 107 are:
- Section 107 deals with appeals to the Appellate Authority.
- Any person aggrieved by a qualifying decision or order of an adjudicating authority may appeal under Section 107(1).
- The normal appeal period is three months from communication of the decision or order.
- The Appellate Authority may allow a further one month where sufficient cause prevented timely filing.
- The Commissioner has a separate six-month period for directing an authorised officer to apply under Section 107(2).
- A departmental application under Section 107(2) is dealt with as an appeal under Section 107(3).
- Appeals must be filed in the prescribed form and manner.
- FORM GST APL-01 is used for an appeal under Section 107(1).
- The appellant must satisfy the statutory pre-deposit requirement.
- The admitted amount of tax, interest, fine, fee and penalty must be paid in full.
- 10% of the remaining disputed tax is generally required as the additional pre-deposit.
- The maximum under Section 107(6)(b) is currently ₹20 crore.
- From 1 October 2025, a penalty-only order without tax demand requires a 10% penalty pre-deposit under the amended Section 107(6).
- A special 25% penalty pre-deposit applies to an appeal against an order under Section 129(3), as provided in the proviso to Section 107(6).
- Once the required Section 107(6) payment is made, recovery of the balance is deemed stayed.
- The Appellate Authority must provide an opportunity of hearing.
- No more than three adjournments may be granted to a party during the hearing.
- Additional grounds may be allowed where the omission was not wilful or unreasonable.
- The Appellate Authority may confirm, modify or annul the order appealed against.
- The Appellate Authority cannot remand the case to the original adjudicating authority under Section 107(11).
- Enhancement of fee, penalty or fine and reduction of refund or ITC require the statutory opportunity to show cause.
- A proposed additional tax or ITC demand during the appeal must follow the statutory notice and limitation requirements.
- The appellate order must be in writing and contain the points for determination, decision and reasons.
- The Appellate Authority should, where possible, decide the appeal within one year.
- The order must be communicated to the relevant parties and authorities.
- The Section 107 order is final and binding on the parties subject to the further statutory remedies identified in Section 107(16).
Conclusion
Section 107 of the CGST Act establishes the principal first-level appellate mechanism against decisions and orders passed by an adjudicating authority under the GST law.
A person aggrieved by a qualifying order can generally file an appeal within three months from the date the order is communicated. Where sufficient cause prevented timely filing, the Appellate Authority may allow the appeal to be presented within a further period of one month. The Commissioner also has a separate statutory mechanism under Section 107(2) for reviewing an adjudication order and directing an authorised officer to approach the Appellate Authority on specified points.
One of the most important practical requirements is the pre-deposit. The appellant must pay the admitted amount covered by Section 107(6)(a), together with 10% of the remaining disputed tax subject to the current maximum of ₹20 crore under Section 107(6)(b). The law also contains separate provisions for penalty-only orders and orders under Section 129(3). Once the required statutory payment has been made, recovery proceedings for the balance are deemed to be stayed.
The Appellate Authority has significant powers while deciding the appeal. It can confirm, modify or annul the impugned order, but the Act provides procedural safeguards where an enhancement of fee, penalty or fine, reduction of refund or ITC, or a new tax/ITC liability is proposed. The appellant must also receive an opportunity of being heard.
The final appellate order must be in writing and must state the points for determination, the decision on those points and the reasons for the decision. Section 107 also provides that appeals should, where possible, be decided within one year, subject to the statutory exclusion for periods during which issuance of the order is stayed by a court or Tribunal.
For taxpayers, the most important practical lesson is to track the communication date of the order, calculate the limitation period carefully, determine the correct pre-deposit, prepare clear grounds of appeal and preserve supporting evidence. Section 107 should also be read together with Sections 108, 112, 117 and 118 because the GST law provides further statutory remedies after the Appellate Authority stage.
In short, Section 107 provides the statutory route for challenging an adjudication order before the Appellate Authority, while also establishing the conditions, procedural safeguards, powers and consequences that govern that appeal.
Based on Google's Helpful Content System, this article emphasizes user value, transparency, and accuracy. It incorporates principles of E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness).
Why Choose Sarkari Bakery?
Official Information
Government schemes & banking information based on official sources.
Step-by-Step Guides
Simple application process explained for every service.
Regular Updates
Content updated whenever official rules or services change.
People-First Content
Helpful, transparent and user-focused content.