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GST Appeal Time Limit and Pre-Deposit Explained
The first appeal: Section 107
An adjudication order — typically issued in Form DRC-07 following a show cause notice — is challenged by a first appeal to the Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017, filed in Form GST APL-01.
GST appeal time limit. Three months from the date on which the decision or order is communicated to the person. The Appellate Authority may allow a further period of one month where it is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within three months.
That one month is the outer limit. Unlike the general law, the section does not confer an open-ended power to condone delay, and appellate authorities have consistently treated the four-month outer period as a bar.
GST appeal pre-deposit. Section 107(6) requires the appellant to pay, in full, the part of the tax, interest, fine, fee and penalty arising from the order that the appellant admits; and a sum equal to ten per cent of the remaining amount of tax in dispute.
The cap on that ten per cent was reduced from twenty-five crore rupees to twenty crore rupees by the Finance (No. 2) Act, 2024, with effect from 1 November 2024, following the recommendation of the 53rd meeting of the GST Council on 22 June 2024. The cap operates separately in relation to each enactment — central tax and State or Union territory tax — rather than as a single overall ceiling.
Two points about the calculation are commonly misunderstood. The ten per cent is computed on the tax in dispute; interest, penalty and fee are excluded from the base. And amounts admitted must be paid in full in addition to it.
The effect of paying. Under Section 107(7), once the pre-deposit is made, recovery proceedings for the balance amount are deemed stayed. This is why the pre-deposit, though burdensome, is also the mechanism that protects a taxpayer from recovery while the appeal is pending.
The second appeal: Section 112
An adverse order of the Appellate Authority under Section 107, or a revision order under Section 108, is appealable to the Goods and Services Tax Appellate Tribunal under Section 112, in Form GST APL-05.
Pre-deposit. Section 112(8) requires payment in full of the admitted part of the tax, interest, fine, fee and penalty; and a sum equal to ten per cent of the remaining amount of tax in dispute, in addition to the amount already paid under Section 107(6), subject to the maximum the section prescribes.
Both figures were eased by the Finance (No. 2) Act, 2024 with effect from 1 November 2024: the percentage came down from twenty per cent to ten per cent, and the cap was reduced from fifty crore rupees. As at the cut-off of this article the ceiling in relation to central tax and State or Union territory tax is twenty crore rupees; a distinct ceiling applies in relation to integrated tax, and the current text of Section 112(8) together with the corresponding provision of the Integrated Goods and Services Tax Act should be checked for the applicable figure in a particular case.
The two ten per cents are not a single twenty per cent. This is the most frequent computational error. Ten per cent is paid at the first appeal on the tax in dispute, and a further ten per cent at the Tribunal stage on the remaining tax in dispute. The cumulative burden approaches twenty per cent, but they are two separate computations made at different stages on different bases.
Penalty-only orders are no longer free. Until recently, an order imposing penalty without any demand of tax attracted no pre-deposit. A proviso to Section 112(8) now requires payment of ten per cent of the disputed penalty in such cases, brought into force with effect from 1 October 2025 by Notification No. 16/2025-Central Tax dated 17 September 2025.
Mode of payment. Departmental practice, reflected in Circular No. 224/18/2024-GST dated 11 July 2024, is that pre-deposit is made through the Electronic Cash Ledger. Attempting to discharge it from the Electronic Credit Ledger is a recurring cause of defective filings.
Limitation for the Tribunal appeal
Because the Tribunal was not operational for a considerable period after the GST law came into force, Section 112 was amended to enable the Government to notify the date from which the limitation period runs — protecting taxpayers whose orders predated the Tribunal’s functioning. Transitional dates have accordingly been notified for orders communicated before specified dates.
Anyone with an order awaiting a Tribunal appeal should therefore check the notified date applicable to that order rather than assuming the ordinary three-month period runs from communication. Transitional windows of this kind close, and once closed they are not easily reopened.
A practical sequence for filing a GST appeal
- Note the date the order was communicated, not the date it was passed. Limitation runs from communication.
- Identify the tax in dispute, separately from interest, penalty and fee.
- Compute ten per cent of that figure and check it against the applicable cap.
- Pay the admitted amounts in full, and the pre-deposit, through the Electronic Cash Ledger.
- File within three months, and if that is not possible, within the further one month with an application explaining the cause.
- Retain proof of payment and file it with the appeal — an appeal filed without evidence of pre-deposit is liable to be treated as defective.
Why this matters more than it appears
The pre-deposit is not merely a fee. It determines, in practice, which disputes get litigated. A taxpayer facing a large demand built on a legal question may find the entry cost substantial, while the same rules give the taxpayer an automatic stay on recovery once paid.
That trade-off is worth evaluating early, alongside the options for settling a demand at the notice stage with reduced or no penalty — because by the time an appeal is contemplated, those options have usually closed.
Frequently Asked Questions
1. What is the time limit for filing a first GST appeal?
A first appeal under Section 107 must generally be filed within three months from the date the order is communicated. A further one-month period may be allowed for sufficient cause.
2. How much pre-deposit is required for a Section 107 appeal?
The appellant must pay admitted amounts in full plus 10% of the remaining disputed tax, subject to the applicable statutory cap.
3. Is a pre-deposit required for a GST Tribunal appeal?
Yes. Section 112 requires an additional pre-deposit of 10% of the remaining disputed tax, subject to the prescribed cap and other applicable requirements.
4. Are the first and second GST appeal pre-deposits cumulative?
Yes. The Tribunal-stage pre-deposit is additional to the amount already paid at the first-appeal stage.
5. Can the Electronic Credit Ledger be used for GST pre-deposit?
Departmental practice requires the prescribed pre-deposit to be made through the Electronic Cash Ledger, rather than the Electronic Credit Ledger.
6. Does payment of the pre-deposit stop recovery?
For a Section 107 appeal, once the required pre-deposit is made, recovery proceedings for the balance amount are deemed stayed under Section 107(7).
Legal Information Disclaimer
This article is published for general legal information and educational purposes only. It reflects the position of Indian law as researched up to 10 August 2026 and may not account for subsequent amendments, notifications, circulars or judicial developments. Pre-deposit ceilings and transitional limitation dates under the GST law have been revised more than once and should be verified in their current form before filing. It is not legal advice, does not take into account any individual’s particular facts or circumstances, and no advocate-client relationship arises from reading it. Readers dealing with an actual matter should obtain independent professional advice from a qualified advocate or tax professional of their own choosing before acting on any information contained here. Statutory provisions, notified figures, rules and case citations referred to in this article have been compiled from published legal materials and may contain errors or omissions, and may have changed since the date stated; no representation or warranty, express or implied, is given as to their accuracy, completeness or currency, and each should be independently verified against the official text or the official record before being relied upon. No liability is accepted for any loss arising from reliance on this article.
Sources / Authorities
- Central Goods and Services Tax Act, 2017 — Sections 107 (including sub-sections (1), (4), (6) and (7)), 108 and 112 (including sub-section (8) and its proviso) — India Code, https://www.indiacode.nic.in
- Finance (No. 2) Act, 2024 — reduction of the Section 107(6) cap from twenty-five crore rupees to twenty crore rupees, and reduction of the Section 112(8) pre-deposit from twenty per cent to ten per cent with a reduced cap, effective 1 November 2024
- 53rd meeting of the GST Council, 22 June 2024 — recommendations on reduction of pre-deposit
- Notification No. 16/2025-Central Tax dated 17 September 2025 — proviso to Section 112(8) requiring ten per cent pre-deposit on penalty-only orders, effective 1 October 2025
- Circular No. 224/18/2024-GST dated 11 July 2024 — recovery of outstanding dues and mode of payment of pre-deposit
- Central Goods and Services Tax Rules, 2017 — Forms GST APL-01 and GST APL-05
- Integrated Goods and Services Tax Act, 2017 — Section 20
