CBIC Notifies Reduction in Pre-Deposit for Filing GST Appeals

By: Admin
October 09, 2024
Categories: 54th GST Council
4 Min Read

Background:

The 53rd GST Council recommended reducing the pre-deposit amount required for filing appeals under GST. This change is intended to ease cash flow and reduce the working capital burden for taxpayers. The maximum pre-deposit for filing an appeal with the Appellate Authority has been reduced from ₹25 crores to ₹20 crores each for CGST and SGST. For appeals to the Appellate Tribunal, the pre-deposit amount has been reduced from 20% of the disputed tax to 10%, with a maximum of ₹20 crores each for CGST and SGST and ₹40 crores for IGST.

Key Changes:

The CBIC, through Notification No. 20/2024 – Central Tax dated October 08, 2024, made the following changes to Rule 108(1) and Rule 110(1) of the CGST Rules:

FORM GST APL-01:

Pre-deposit reduced to 10% of disputed tax/cess, capped at ₹20 crores each for CGST, SGST, and cess, and ₹40 crores for IGST.

FORM GST APL-05:

Pre-deposit reduced to 10% of disputed tax/cess, capped at ₹20 crores each for CGST, SGST, and cess, and ₹40 crores for IGST.

These amendments will be effective from November 01, 2024.

Our Comments:

The reduction in pre-deposit requirements for filing GST appeals is a significant relief for taxpayers, especially those involved in high-value disputes. By lowering the pre-deposit to 10% with caps on the amounts, the government aims to improve liquidity and reduce the financial burden on businesses. This change will encourage businesses to pursue their appeals without excessive upfront financial commitments, thereby promoting smoother dispute resolution and compliance.

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