Section 118 of the Central Goods and Services Tax Act, 2017 deals with appeals to the Supreme Court under the GST law. It provides the circumstances in which an appeal can be filed before the Supreme Court against an order of the Appellate Tribunal or against a judgment or order of the High Court in an appeal under Section 117.
The provision is an important part of the GST appellate hierarchy because it establishes the route from the Appellate Tribunal or High Court to the highest judicial forum in India.
The current statutory framework is also important because the terminology relating to GST Appellate Tribunal benches was changed by the Finance Act, 2023. Section 118 now refers to an order passed by the Principal Bench of the Appellate Tribunal, replacing the earlier reference to the National Bench or Regional Benches with effect from 1 August 2023.
Section 118 contains three sub-sections. The first identifies the two situations in which an appeal can lie to the Supreme Court. The second applies the relevant provisions of the Code of Civil Procedure, 1908 to such appeals. The third explains what happens when the Supreme Court varies or reverses a judgment of the High Court.
What Is Section 118 of the CGST Act?
Section 118 is titled “Appeal to Supreme Court.”
Under the current provision, an appeal lies to the Supreme Court:
- from an order passed by the Principal Bench of the Appellate Tribunal; or
- from a judgment or order passed by the High Court in an appeal under Section 117 where the High Court certifies the case as fit for appeal to the Supreme Court.
The section therefore recognises two separate routes to the Supreme Court.
Route 1: Appeal from the Principal Bench of the Appellate Tribunal
A party may appeal to the Supreme Court from an order passed by the Principal Bench of the GST Appellate Tribunal.
Route 2: Appeal from the High Court
A judgment or order of the High Court in an appeal under Section 117 can also reach the Supreme Court where the High Court certifies that the case is a fit one for appeal to the Supreme Court.
These two routes should not be confused because the statutory conditions are different.
Current Position of the GST Appellate Tribunal
The original CGST Act used the expressions National Bench and Regional Benches in Section 118.
However, the terminology was changed by the Finance Act, 2023. The expression “National Bench or Regional Benches” in Section 118(1)(a) was replaced with “Principal Bench”, with effect from 1 August 2023.
The change forms part of the broader restructuring of the GST Appellate Tribunal framework.
The GST Council had recommended the creation of a GSTAT with a Principal Bench at New Delhi and State Benches at locations recommended based on requests from State Governments.
Therefore, when discussing the current Section 118, it is important to use the updated statutory terminology rather than continuing to describe the provision only in terms of the old National and Regional Benches.
Section 118(1) – When Can an Appeal Be Filed Before the Supreme Court?
Section 118(1) provides two categories of appeals.
It states that an appeal shall lie to the Supreme Court:
- from any order passed by the Principal Bench of the Appellate Tribunal; or
- from any judgment or order passed by the High Court in an appeal under Section 117, where the High Court certifies the case to be fit for appeal to the Supreme Court.
These two situations form the core of Section 118.
Appeal From the Principal Bench of the Appellate Tribunal
The first category is an appeal against an order passed by the Principal Bench of the Appellate Tribunal.
This means that the GST appellate process can ultimately move from the Tribunal to the Supreme Court.
A simplified structure can be represented as:
Adjudicating Authority → Appellate Authority → Appellate Tribunal → Supreme Court
However, the actual appellate route depends on the nature of the order and the jurisdiction assigned under the GST law.
The current wording of Section 118 is specifically connected with an order of the Principal Bench.
Example of Appeal From the Principal Bench
Suppose a taxpayer challenges a GST demand before the appropriate appellate forums.
The matter eventually comes before the Principal Bench of the Appellate Tribunal.
The Principal Bench passes an order involving a question for which the statute provides an appeal to the Supreme Court.
The aggrieved party may invoke Section 118 and pursue an appeal before the Supreme Court in accordance with the applicable procedural requirements.
The Supreme Court then becomes the next judicial forum in the statutory appellate hierarchy.
Appeal From a High Court Judgment or Order
The second category under Section 118(1) concerns a judgment or order of the High Court in an appeal filed under Section 117.
Section 117 deals with appeals to the High Court from the Appellate Tribunal.
However, a High Court decision does not automatically result in a Supreme Court appeal under Section 118 merely because one party is dissatisfied with it.
Section 118(1)(b) specifically requires the High Court to certify the case as fit for appeal to the Supreme Court.
Certificate of the High Court
The certification requirement is an important part of Section 118(1)(b).
The High Court may certify the case:
- on its own motion; or
- on an application made by or on behalf of the aggrieved party.
The application for certification is contemplated immediately after the judgment or order is passed.
The statutory language requires the High Court to certify that the case is a fit one for appeal to the Supreme Court.
Therefore, the High Court’s certification is an important statutory gateway for this route to the Supreme Court.
What Is Section 117?
Section 117 deals with an appeal to the High Court from an order of the Appellate Tribunal.
This creates a relationship between Sections 117 and 118.
In simplified form:
Section 117 → Appeal to High Court
Section 118 → Appeal to Supreme Court
A taxpayer or tax authority therefore needs to identify the forum from which the appeal originates before determining the applicable provision.
Section 118(1)(b) – Fit Case for Appeal
The phrase “fit one for appeal to the Supreme Court” is specifically used in Section 118(1)(b).
The High Court must certify the case for Supreme Court appeal.
This requirement is different from simply stating that one party disagrees with the High Court’s decision.
The statutory mechanism therefore requires a certification by the High Court for this particular route.
Application for Certification
Section 118 permits certification to be sought on an application made by or on behalf of the party aggrieved.
The statutory wording also allows the High Court to certify the matter on its own motion.
This means the certification mechanism can operate in either of two ways:
- the High Court itself considers the case fit for appeal; or
- the aggrieved party seeks such certification from the High Court.
Section 118(2) – Application of the Code of Civil Procedure
Section 118(2) provides that the provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply to appeals under Section 118.
The provision further states that these rules apply as they apply to appeals from decrees of a High Court.
This means that the CGST Act does not independently provide every procedural detail applicable to a Supreme Court appeal.
Instead, the relevant provisions of the CPC relating to Supreme Court appeals are applied to the extent provided by Section 118.
Meaning of “So Far as May Be”
The expression “so far as may be” is significant.
It means that the CPC provisions relating to appeals to the Supreme Court apply to GST appeals under Section 118 to the extent that they are applicable to the particular GST proceeding.
The CGST Act therefore incorporates the relevant procedural framework rather than reproducing the entire Supreme Court appellate procedure inside the GST legislation.
Why Does Section 118 Refer to the CPC?
Supreme Court appeals involve detailed procedural requirements.
These may include matters relating to:
- filing;
- records;
- presentation of the appeal;
- preparation of the case;
- service;
- hearing;
- procedural applications; and
- other appellate matters.
Rather than establishing an entirely separate procedural code for GST appeals to the Supreme Court, Section 118 connects the GST appeal mechanism with the established CPC framework.
Section 118(3) – Effect of Supreme Court Decision
Section 118(3) deals with a situation where the Supreme Court varies or reverses the judgment of the High Court.
It provides that effect shall be given to the order of the Supreme Court in the manner provided in Section 117 in the case of a judgment of the High Court.
This provision ensures that the Supreme Court’s final decision is implemented through the statutory framework applicable to the High Court judgment.
Example of Section 118(3)
Suppose:
- An Appellate Tribunal order is challenged before the High Court under Section 117.
- The High Court gives a judgment.
- The case is certified as fit for appeal to the Supreme Court.
- The Supreme Court hears the appeal.
- The Supreme Court varies or reverses the High Court’s judgment.
Section 118(3) provides the statutory mechanism for giving effect to the Supreme Court’s order in relation to the earlier High Court judgment.
Section 118 and the Appellate Hierarchy Under GST
Section 118 is easier to understand when viewed as part of the wider appellate structure.
A simplified hierarchy is:
| Stage | Provision | Forum |
|---|---|---|
| First appeal | Section 107 | Appellate Authority |
| Appeal to Tribunal | Section 112 | Appellate Tribunal |
| Appeal to High Court | Section 117 | High Court |
| Appeal to Supreme Court | Section 118 | Supreme Court |
This structure should always be read together with the specific jurisdictional rules and conditions contained in each provision.
Section 118 and Section 107
Section 107 provides the first appeal against a decision or order passed by an adjudicating authority.
The appeal is filed before the prescribed Appellate Authority.
Section 118 is much later in the appellate hierarchy and deals with appeals to the Supreme Court.
Therefore:
Section 107 = First appeal
Section 118 = Supreme Court appeal
The provisions serve very different purposes.
Section 118 and Section 108
Section 108 deals with the powers of the Revisional Authority.
A revisional order can be subject to further appellate proceedings under the GST law.
Section 112 deals with appeals to the Appellate Tribunal against specified orders of the Appellate Authority or Revisional Authority.
Section 118 then provides the Supreme Court route for the orders covered by its wording.
Section 118 and Section 112
Section 112 deals with appeals to the Appellate Tribunal.
This is an important intermediate stage in the GST appellate structure.
A taxpayer or department may challenge an eligible order before the Tribunal under Section 112.
Section 118 then becomes relevant at the Supreme Court stage for the orders specified in Section 118.
Section 118 and Section 113
Section 113 deals with orders of the Appellate Tribunal.
Section 118 specifically identifies an appeal to the Supreme Court from an order passed by the Principal Bench of the Appellate Tribunal.
Therefore:
Section 113 → Tribunal passes order
Section 118 → Supreme Court appeal from specified Tribunal order
The two sections should be read together when analysing the Tribunal-to-Supreme-Court appellate route.
Section 118 and Section 117
Sections 117 and 118 are directly connected.
Section 117
Provides for an appeal to the High Court from the Appellate Tribunal in specified circumstances.
Section 118
Provides for:
- appeal from the Principal Bench to the Supreme Court; and
- appeal from a High Court judgment or order under Section 117 where the High Court certifies the case as fit for Supreme Court appeal.
Thus, Section 118 provides the final appellate stage under the CGST Act before the Supreme Court.
👉 Read More → Section 120 – Appeal not to be filed in certain cases
Principal Bench and State Benches
The terminology of the GST Appellate Tribunal has changed since the original enactment of the CGST Act.
The Finance Act, 2023 amended the CGST Act so that the earlier reference to the National Bench or Regional Benches was replaced by Principal Bench in Section 118, with effect from 1 August 2023.
The same broader legislative restructuring also changed terminology elsewhere in the Tribunal provisions.
This is important when reading older GST articles or older copies of the CGST Act because those sources may still refer to National and Regional Benches.
Why the Updated Terminology Matters
A taxpayer researching an old case may encounter language such as:
- National Bench;
- Regional Bench;
- State Bench; or
- Area Bench.
The current CGST Act has been amended since its original enactment.
Therefore, current legal analysis should use the statutory wording applicable to the relevant period.
For Section 118, the current central provision refers to the Principal Bench.
Section 118 and the Supreme Court
The Supreme Court is the highest court in India’s judicial hierarchy.
An appeal under Section 118 therefore represents a significant stage in GST litigation.
However, Section 118 does not mean that every GST dispute can automatically be taken to the Supreme Court.
The specific statutory route must be satisfied.
For a High Court judgment or order under Section 117, Section 118(1)(b) expressly requires certification by the High Court that the case is fit for appeal to the Supreme Court.
Is Every High Court GST Judgment Appealable to the Supreme Court Under Section 118?
No.
Section 118(1)(b) specifically refers to a High Court judgment or order in an appeal under Section 117 which the High Court certifies to be a fit one for appeal to the Supreme Court.
Therefore, a party cannot treat every High Court GST judgment as automatically appealable under this specific statutory route.
The applicable Supreme Court appellate procedure and constitutional jurisdiction should also be considered where relevant.
Is Every Tribunal Order Appealable to the Supreme Court Under Section 118?
Section 118(1)(a) specifically provides an appeal from an order passed by the Principal Bench of the Appellate Tribunal.
The current wording should therefore be followed carefully.
The Tribunal’s jurisdiction and the nature of the order should be examined before determining the appropriate appellate remedy.
Difference Between Section 117 and Section 118
| Basis | Section 117 | Section 118 |
|---|---|---|
| Forum | High Court | Supreme Court |
| Main subject | Appeal from Appellate Tribunal | Appeal from Principal Bench or qualifying High Court judgment/order |
| Tribunal route | Tribunal → High Court | Tribunal/High Court → Supreme Court |
| Certification | Section 117 deals with substantial question of law | Section 118(1)(b) requires High Court certification for the specified High Court route |
| CPC reference | CPC provisions relating to High Court appeals | CPC provisions relating to Supreme Court appeals |
Difference Between Section 118 and a General Supreme Court Appeal
Section 118 is a statutory GST appellate provision.
It should not be read as excluding other constitutional or statutory remedies that may independently exist before the Supreme Court.
For example, the Constitution provides separate jurisdiction to the Supreme Court in appropriate cases.
Section 118 specifically establishes the GST Act’s own appeal route.
Therefore, when dealing with an actual dispute, the precise source of jurisdiction should be identified rather than assuming that every Supreme Court proceeding is necessarily filed under Section 118.
Practical Example – Tribunal Order
Suppose a taxpayer receives an order from the Principal Bench of the GST Appellate Tribunal.
The taxpayer believes the order should be challenged further.
Section 118(1)(a) provides the statutory route for an appeal to the Supreme Court from an order passed by the Principal Bench.
The taxpayer would then need to comply with the applicable Supreme Court appellate procedure.
Practical Example – High Court Order
Suppose an appeal against an Appellate Tribunal order is heard by the High Court under Section 117.
The High Court passes judgment.
The aggrieved party believes the case should be taken to the Supreme Court.
Under Section 118(1)(b), the High Court may, on its own motion or on an application by or on behalf of the aggrieved party immediately after passing the judgment or order, certify that the case is fit for appeal to the Supreme Court.
Practical Example – Supreme Court Reverses High Court
Suppose the High Court gives a judgment against a taxpayer.
The matter reaches the Supreme Court under Section 118.
The Supreme Court subsequently reverses the High Court judgment.
Section 118(3) provides that effect must be given to the Supreme Court’s order in the manner specified in Section 117 for giving effect to a High Court judgment.
Importance of Section 118 for Taxpayers
Section 118 provides a statutory mechanism for taking specified GST disputes to the Supreme Court.
For businesses involved in significant GST litigation, understanding the appellate hierarchy is important because each stage has its own:
- jurisdiction;
- procedural requirements;
- limitation provisions;
- documentation requirements; and
- conditions for filing.
A taxpayer should therefore not assume that the same procedure applies at every appellate stage.
Records and Documentation
A GST dispute reaching the Supreme Court can involve a substantial record.
Businesses should preserve relevant documents such as:
- original adjudication orders;
- first appellate orders;
- Tribunal orders;
- High Court judgments;
- statements of facts;
- grounds of appeal;
- tax calculations;
- invoices;
- contracts;
- supporting documents;
- correspondence; and
- relevant legal submissions.
The exact documents required will depend on the case and the applicable Supreme Court procedure.
Importance of the High Court Certificate
Where the Supreme Court route is based on Section 118(1)(b), the High Court certification requirement is central to the statutory mechanism.
A party seeking such a route should therefore consider the certification requirement immediately after the High Court judgment or order, because Section 118 specifically refers to an application made immediately after the judgment or order.
Section 118 and Departmental Appeals
Section 118 can also be relevant where the tax administration is the aggrieved party, subject to the applicable statutory and procedural requirements.
The GST appellate framework allows both taxpayers and tax authorities to pursue appeals where the law permits.
The existence of a departmental appeal does not by itself alter the statutory requirements under Section 118.
Section 118 and Payment of Demand
Section 118 should also be read with Section 119, which deals with sums due to the Government notwithstanding an appeal.
Section 119 provides that amounts due to the Government as a result of specified Tribunal or High Court orders remain payable notwithstanding that an appeal has been preferred to the High Court or Supreme Court.
Therefore, filing an appeal and the question of recovery or payment are related but separate legal issues.
A taxpayer should examine the applicable stay and recovery provisions rather than assuming that an appeal automatically suspends every consequence of the underlying order.
Section 118 and Section 119 – Important Difference
| Provision | Main subject |
|---|---|
| Section 118 | Appeal to Supreme Court |
| Section 119 | Sums due to Government notwithstanding appeal |
Section 118 establishes the appellate route.
Section 119 deals with the payment status of amounts due despite the filing of an appeal.
Section 118 and Section 120
Section 120 deals with circumstances in which the Board may issue orders, instructions or directions fixing monetary limits for regulating the filing of appeals or applications by central tax officers.
This is relevant to departmental litigation management.
However, such instructions do not change the statutory rights and remedies available under Section 118 itself.
Key Points to Remember About Section 118
The important points of Section 118 can be summarised as follows:
- Section 118 deals with appeals to the Supreme Court under the CGST Act.
- It contains three sub-sections.
- Section 118(1) identifies the situations in which an appeal lies to the Supreme Court.
- An appeal can lie from an order passed by the Principal Bench of the Appellate Tribunal.
- An appeal can also lie from a qualifying High Court judgment or order passed in an appeal under Section 117.
- For the High Court route, the High Court must certify the case to be fit for appeal to the Supreme Court.
- The High Court can provide such certification on its own motion.
- Certification can also be sought through an application made by or on behalf of the aggrieved party.
- Section 118(2) applies relevant CPC provisions concerning appeals to the Supreme Court.
- These CPC provisions apply so far as may be.
- Section 118(3) deals with the effect of a Supreme Court judgment that varies or reverses a High Court judgment.
- The current Section 118 uses the expression Principal Bench.
- The earlier reference to National Bench or Regional Benches was replaced with Principal Bench with effect from 1 August 2023.
- Section 117 deals with appeals to the High Court, while Section 118 deals with the Supreme Court stage.
- Section 119 separately deals with sums payable to the Government despite an appeal.
- Section 118 does not mean that every GST dispute automatically reaches the Supreme Court.
- The applicable statutory conditions and Supreme Court procedural requirements must be followed.
- The nature of the original order and the appellate route should be identified before filing a further appeal.
Conclusion
Section 118 of the CGST Act provides the statutory framework for taking specified GST disputes to the Supreme Court of India.
The provision identifies two principal routes. The first is an appeal from an order passed by the Principal Bench of the Appellate Tribunal. The second is an appeal from a judgment or order passed by the High Court in an appeal under Section 117, where the High Court certifies the case to be fit for appeal to the Supreme Court.
For the High Court route, the certification requirement is particularly important. Section 118 allows the High Court to certify the matter on its own motion or on an application made by or on behalf of the aggrieved party immediately after passing the judgment or order. This makes the High Court’s certification an important part of the statutory mechanism.
Section 118(2) also connects GST appeals to the established appellate procedure under the Code of Civil Procedure, 1908, providing that the CPC provisions relating to appeals to the Supreme Court apply, so far as may be, to appeals under Section 118.
Section 118(3) addresses the implementation of a Supreme Court decision where the High Court judgment has been varied or reversed. This ensures that the Supreme Court’s final order is given effect through the mechanism provided by the GST appellate framework.
An important current-law point is the change in GST Appellate Tribunal terminology. The original CGST Act referred to the National Bench or Regional Benches, but the Finance Act, 2023 substituted the reference with Principal Bench, effective from 1 August 2023. Therefore, current explanations of Section 118 should use the updated terminology.
Section 118 should also be read with the surrounding appellate provisions, particularly Section 112 on appeals to the Appellate Tribunal, Section 113 on Tribunal orders, Section 117 on appeals to the High Court and Section 119 on sums due to the Government notwithstanding an appeal.
In practical terms, Section 118 represents an important stage in the GST litigation hierarchy. However, reaching the Supreme Court is subject to the specific statutory route and applicable procedural requirements. A taxpayer or tax authority considering such an appeal should therefore examine the relevant order, appellate jurisdiction, certification requirements and applicable Supreme Court procedure carefully.
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.