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CHAPTER-4
THE CENTRAL GST BILL ACT, 2017

4.1 MEANING
The Bill enacted by Parliament in the Sixty-eighth Year of the Republic of India whic
is stated as follows:—

According to clause- 1 of The Central Goods And Services Tax Bill, 2017

(a) This Act may be called the Central Goods and Services Tax Act, 2017.

(b) It extends to the whole of India except the State of Jammu and Kashmir.

(c) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint-

Provided that different dates may be appointed for different provisions of this
Act and any reference in any such provision to the commencement of this Act
shall be construed as a reference to the coming into force of that provision.

4.2 ADMINISTRATION

4.2.1 Officers Under The Act,

According to clause 3 of The Central Goods And Services Tax Bill, 2017

The Government shall, by notification, appoint the following classes of officers

for the purposes of this Act, namely:––
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(a) Principal Chief Commissioners of Central Tax or Principal Directors

General of Central Tax,

(b) Chief Commissioners of Central Tax or Directors General of Central Tax,

(c) Principal Commissioners of Central Tax or Principal Additional Directors
General of Central Tax,

(d) Commissioners of Central Tax or Additional Directors General of Central

Tax,

(e) Additional Commissioners of Central Tax or Additional Directors of

Central Tax,

(f) Joint Commissioners of Central Tax or Joint Directors of Central Tax,

(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax,

(h) Assistant Commissioners of Central Tax or Assistant Directors of Central
Tax, and

(i) any other class of officers as it may deem fit:

Provided that the officers appointed under the Central Excise Act, 1944
shall be deemed to be the officers appointed under the provisions of this Act.

APPOINTMENT OF OFFICERS

According to clause 4.of The Central Goods And Services Tax Bill, 2017

(1) The Board may, in addition to the officers as may be notified by the
Government under section 3, appoint such persons as it may think fit to be the
officers under this Act.
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(2) Without prejudice to the provisions of sub-section (1), the Board

may, by order, authorise any officer referred to in clauses (a) to (h) of section 3
to appoint officers of central tax below the rank of Assistant Commissioner of
central tax for the administration of this Act.

POWERS OF THE OFFICERS

According to clause 5.of The Central Goods And Services Tax Bill, 2017

(1) Subject to such conditions and limitations as the Board may impose,
an officer of central tax may exercise the powers and discharge the duties
conferred or imposed on him under this Act.

(2) An officer of central tax may exercise the powers and discharge the
duties conferred or imposed under this Act on any other officer of central tax
who is subordinate to him.

(3) The Commissioner may, subject to such conditions and limitations

as may be specified in this behalf by him, delegate his powers to any other
officer who is subordinate to him.

(4) Notwithstanding anything contained in this section, an Appellate

Authority shall not exercise the powers and discharge the duties conferred or
imposed on any other officer of central tax

APPOINTMENT OF OFFICERS OF STATE TAX

OR UNION TERRITORY TAX IN CERTAIN
CIRCUMSTANCES.

According to clause 6.of The Central Goods And Services Tax Bill, 2017
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(1) Without prejudice to the provisions of this Act, the officers appointed
under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act are authorised to be the proper officers for the purposes of
this Act, subject to such conditions as the Government shall, on the
recommendations of the Council, by notification, specify.

(2) Subject to the conditions specified in the notification issued under

sub-section (1) of

(a) where any proper officer issues an order under this Act, he
shall also issue an order under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act, as authorised by the
State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as the case may be, under intimation to the
jurisdictional officer of State tax or Union territory tax;

(b) where a proper officer under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act has initiated
any proceedings on a subject matter, no proceedings shall be initiated by
the proper officer under this Act on the same subject matter.

(3) Any proceedings for rectification, appeal and revision, wherever

applicable, of any order passed by an officer appointed under this Act shall not
lie before an officer appointed under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act.

4.3 REGISTERATION

4.3.1 PERSONS ELIGIBILITY FOR REGISTRATION.

According to clause 22.of The Central Goods And Services Tax Bill, 2017
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(1) Every supplier shall be liable to be registered under this Act in the State or
Union territory, other than special category States, from where he makes a taxable
supply of goods or services or both, if his aggregate turnover in a financial year
exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or

services or both from any of the special category States, he shall be liable to be
registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

(2) Every person who, on the day immediately preceding the appointed day, is
registered or holds a license under an existing law, shall be liable to be registered
under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered under this Act is
transferred, whether on account of succession or otherwise, to another person as a
going concern, the transferee or the successor, as the case may be, shall be liable to be
registered with effect from the date of such transfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of

transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as
the case may be, de-merger of two or more companies pursuant to an order of a High
Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect
from the date on which the Registrar of Companies issues a certificate of
incorporation giving effect to such order of the High Court or Tribunal.

Explanation.––For the purposes of this section,––

(i) the expression “aggregate turnover” shall include all supplies made
by the taxable person, whether on his own account or made on behalf of all his
principals;
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(ii) the supply of goods, after completion of job-work, by a registered

job worker shall be treated as the supply of goods by the principal referred to in
section 143, and the value of such goods shall not be included in the aggregate
turnover of the registered job worker;

(iii) the expression “special category States” shall mean the States as
specified in sub-clause (g) of clause (4) of article 279A of the Constitution.

4.3.2 PERSONS NOT LIABLE FOR REGISTRATION

According to clause 23.of The Central Goods And Services Tax Bill, 2017

(1) The following persons shall not be liable to registration, namely:––

(a) any person engaged exclusively in the business of supplying goods

or services or both that are not liable to tax or wholly exempt from tax
under this Act or under the Integrated Goods and Services Tax Act;

(b) an agriculturist, to the extent of supply of produce out of cultivation

of land.

(2) The Government may, on the recommendations of the Council, by

notification, specify the category of persons who may be exempted from obtaining
registration under this Act.

4.3.3 PROCEDURE FOR GST REGISTRATION.

According to clause 25.of The Central Goods And Services Tax Bill, 2017

(1) Every person who is liable to be registered under section 22 or section 24

shall apply for registration in every such State or Union territory in which he is so
liable within thirty days from the date on which he becomes liable to registration, in
such manner and subject to such conditions as may be prescribed:
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Provided that a casual taxable person or a non-resident taxable person shall

apply for registration at least five days prior to the commencement of business.

Explanation.—Every person who makes a supply from the territorial waters of

India shall obtain registration in the coastal State or Union territory where the nearest
point of the appropriate base line is located.

(2) A person seeking registration under this Act shall be granted a single
registration in a State or Union territory: Provided that a person having multiple
business verticals in a State or Union territory may be granted a separate registration
for each business vertical, subject to such conditions as may be prescribed.

(3) A person, though not liable to be registered under section 22 or section 24

may get himself registered voluntarily, and all provisions of this Act, as are applicable
to a registered person, shall apply to such person.

(4) A person who has obtained or is required to obtain more than one
registration, whether in one State or Union territory or more than one State or Union
territory shall, in respect of each such registration, be treated as distinct persons for
the purposes of this Act.

(5) Where a person who has obtained or is required to obtain registration in a

State or Union territory in respect of an establishment, has an establishment in
another State or Union territory, then such establishments shall be treated as
establishments of distinct persons for the purposes of this Act.

(6) Every person shall have a Permanent Account Number issued under the
Incometax Act, 1961 in order to be eligible for grant of registration: Provided that a
person required to deduct tax under section 51 may have, in lieu of a Permanent
Account Number, a Tax Deduction and Collection Account Number issued under the
said Act in order to be eligible for grant of registration.
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(7) Notwithstanding anything contained in sub-section (6), a non-resident

taxable person may be granted registration under sub-section (1) on the basis of such
other documents as may be prescribed.

(8) Where a person who is liable to be registered under this Act fails to obtain
registration, the proper officer may, without prejudice to any action which may be
taken under this Act or under any other law for the time being in force, proceed to
register such person in such manner as may be prescribed.

(9) Notwithstanding anything contained in sub-section (1),–– (a) any

specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign countries ; and (b) any other
person or class of persons, as may be notified by the Commissioner, shall be granted a
Unique Identity Number in such manner and for such purposes, including refund of
taxes on the notified supplies of goods or services or both received by them, as may
be prescribed.

(10) The registration or the Unique Identity Number shall be granted or

rejected after due verification in such manner and within such period as may be
prescribed.

(11) A certificate of registration shall be issued in such form and with effect
from such date as may be prescribed.

(12) A registration or a Unique Identity Number shall be deemed to have been

granted after the expiry of the period prescribed under sub-section (10), if no
deficiency has been communicated to the applicant within that period.
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 GST REGISTRATION PROCESS

Here is a simple procedure to complete GST registration from the comfort of your
home:

 Log on to www.gst.gov.in.

 The menu atop the page has a tab called ‘Services’, click on it and you will get three
options – ‘Registration’, ‘Payments’, and ‘User Services’.

 Click on ‘Registration’ and choose ‘New Registration’ to start with Part A of the
registration process.

 A new page will open and here you will be required to select your status as a GST
practitioner or a taxpayer.

 A few details will then have to be entered in the form, such as the legal name of the
business, the district and state in which the business is locate, email address, mobile
number, Permanent Account Number, etc.

 The portal will then verify your details and you will receive a One Time Password
for confirmation.

 Enter the OTP in the OTP Verification window and click on ‘Proceed’.

 The system will generate a Temporary Reference Number which will be displayed
on the screen.

 The Temporary Reference Number will have to be used to login to Part B of the
registration process.
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 Enter the Temporary Reference Number along with the Captcha Code to start with
Part B of the registration process.

 ‘My Saved Application’ will appear on a new page, and you will have to click on the
‘Edit’ icon (white pen in a blue square) under the ‘Action’ option.

 You will be redirected to the registration application form with different tabs, such as
Business Details, Authorised Signatory, Promoter/Partners, Authorised
Representative, Principal Place of Business, Additional Places of Business, Bank
Accounts, Goods and Services, State Specific Information and Verification. You will
have to click on each of the aforementioned tabs to enter the required information.

 Next, enter the information related to the commodity before you select ‘Save &
Continue’.

 You will then have to fill in information regarding your bank account and then
upload the relevant documents.

 You will then be redirected to the verification tab where the details you have sent for
verification are displayed. You will be required to put your digital signature on the
application after you have filled it up. Digital signatures can be put using EVC, E-
Signature, or Digital Signature Certificate. Companies and LLPs can use only Digital
Signature Certificates.

 Hit the ‘Submit’ option and the updated details and documents will be saved.

 Hit ‘Proceed’ and you will be redirected to a pop-up window where you will have to
click on ‘Sign’.

 Once you have signed the form, you can submit it so that an acknowledgment can be
sent to your registered mobile number and email in the form of the Application
Reference Number.
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 A GST officer will then verify your application number to determine whether it can
be approved or rejected. If your application is rejected, you will have to provide
some more information or documents until the authorities are convinced to approve
your application.

People who do not pay GST or do not make the full payment shall be liable to a
penalty of 10% of the tax amount, subject to a minimum of Rs.10,000. Offenders who
deliberately evade paying taxes will be levied with a penalty of 100% of the tax
amount. However, genuine errors will attract a penalty of 10% of the tax due.

4.3.4 AMENDMENT OF REGISTRATION.

According to clause 28 of The Central Goods And Services Tax Bill, 2017

(1) Every registered person and a person to whom a Unique Identity

Number has been assigned shall inform the proper officer of any changes in the
information furnished at the time of registration or subsequent thereto, in such
form and manner and within such period as may be prescribed.

(2) The proper officer may, on the basis of information furnished under
sub-section (1) or as ascertained by him, approve or reject amendments in the
registration particulars in such manner and within such period as may be
prescribed: Provided that approval of the proper officer shall not be required in
respect of amendment of such particulars as may be prescribed: Provided
further that the proper officer shall not reject the application for amendment in
the registration particulars without giving the person an opportunity of being
heard.

(3) Any rejection or approval of amendments under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act, as the
case may be, shall be deemed to be a rejection or approval under this Act.
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4.3.5 CANCELLATION OF REGISTRATION.

According to clause 29 of The Central Goods And Services Tax Bill, 2017

(1) The proper officer may, either on his own motion or on an application
filed by the registered person or by his legal heirs, in case of death of such
person, cancel the registration, in such manner and within such period as may
be prescribed, having regard to the circumstances where,––

(a) the business has been discontinued, transferred fully for any
reason including death of the proprietor, amalgamated with other legal
entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered under sub-
section (3) of section 25, is no longer liable to be registered under
section 22 or section 24.

(2) The proper officer may cancel the registration of a person from such
date, including any retrospective date, as he may deem fit, where,––

(a) a registered person has contravened such provisions of the Act

or the rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 has not furnished returns
for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause

(b), has not furnished returns for a continuous period of six months; or
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(d) any person who has taken voluntary registration under sub-
section (3) of section 25 has not commenced business within six months
from the date of registration; or

(e) registration has been obtained by means of fraud, wilful

misstatement or suppression of facts: Provided that the proper officer
shall not cancel the registration without giving the person an opportunity
of being heard.

(3) The cancellation of registration under this section shall not affect the
liability of the person to pay tax and other dues under this Act or to discharge
any obligation under this Act or the rules made thereunder for any period prior
to the date of cancellation whether or not such tax and other dues are
determined before or after the date of cancellation.

(4) The cancellation of registration under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act, as the case may
be, shall be deemed to be a cancellation of registration under this Act.

(5) Every registered person whose registration is cancelled shall pay an

amount, by way of debit in the electronic credit ledger or electronic cash
ledger, equivalent to the credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held in stock or capital
goods or plant and machinery on the day immediately preceding the date of
such cancellation or the output tax payable on such goods, whichever is higher,
calculated in such manner as may be prescribed: Provided that in case of capital
goods or plant and machinery, the taxable person shall pay an amount equal to
the input tax credit taken on the said capital goods or plant and machinery,
reduced by such percentage points as may be prescribed or the tax on the
transaction value of such capital goods or plant and machinery under section
15, whichever is higher.
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(6) The amount payable under sub-section (5) shall be calculated in such
manner as may be prescribed.

4.3.6 REVOCATION OF CANCELLATION OF

REGISTRATION
According to clause 30 of The Central Goods And Services Tax Bill, 2017

(1) Subject to such conditions as may be prescribed, any registered

person, whose registration is cancelled by the proper officer on his own motion,
may apply to such officer for revocation of cancellation of the registration in
the prescribed manner within thirty days from the date of service of the
cancellation order.

(2) The proper officer may, in such manner and within such period as
may be prescribed, by order, either revoke cancellation of the registration or
reject the application: Provided that the application for revocation of
cancellation of registration shall not be rejected unless the applicant has been
given an opportunity of being heard.

(3) The revocation of cancellation of registration under the State Goods

and Services Tax Act or the Union Territory Goods and Services Tax Act, as
the case may be, shall be deemed to be a revocation of cancellation of
registration under this Act.

4.4 REFUNDS
According to clause 54 of The Central Goods And Services Tax Bill, 2017 any person
claiming refund of any tax and interest, if any, paid on such tax or any other amount
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paid by him, may make an application before the expiry of two years from the
relevant date in such form and manner as may be prescribed.

GST provides for a clearer and efficient invoice based tracking system, verifying the
transactions on an individual basis, thus, allowing systematic checking of the same. It
comes as a huge relief for manufacturers or exporters, especially those in a 100%
EOU or Special Economic Zone, whose working capital gets tied up in this
cumbersome refund process.

The GST refund process in detail is given as follows.

There are certain events where refund arises. Let us check out the transactions in
details.

 In case of exports (including deemed exports), where there is a cumulative

balance of input credit arising out of such exports or under a claim of rebate.

 Where there is an excessive payment of tax due to an inadvertent mistake.

 When there is an accumulation of credit resulting due to the output tax being
nil or exempted from tax.

 A refund may arise after a provisional assessment.

 Where an appeal is for a respondent, then the amount made as a deposit

towards holding such appeal shall be refunded to the appellant

 Refund after investigation or findings by an adjudicating officer.

 Refund can be provided to foreign embassies or bodies of United Nations when

the purchases are made by them.
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 When there is an accumulation of credit resulting due to the output tax being of
a lesser rate than the input.

 Suppliers receiving discounts or credits through the issuance of credit notes.

 GST paid by foreign or international tourists are subjected to refund.

The Government will not just give away the pending amount as a refund. The
taxpayers have to make an application and follow the correct procedure for fetching
the refund amounts in their bank accounts.

REFUND APPLICATION PROCESS UNDER GST

The refund application has to be made in Form RFD-01 (to be certified by a

Chartered Accountant) within a period of 2 years from the

“relevant date.” This relevant date is different for different scenarios.

1. When the goods are exported through air or sea, then relevant date shall be the
date on which such ship or aircraft leaves India.

2. When the goods are carried by a land vehicle, then relevant date shall be the
date when the goods cross the land frontier of the country

3. When goods are sent through post, then relevant date shall be the date of
despatch of goods from the Post Office.

4. When the supply includes services, and when the same is completed before
receipt of payment, then relevant date shall be the payment receipt date.

5. Similarly, when the services are performed after receipt of an advance, then
relevant date shall be the invoice date.
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6. Where refund claim is made for excess input tax credit left unutilised, then
relevant date shall be the end of the financial year for which such refund claim
is being made.

7. Where the goods are supplied for deemed exports, i.e. supply to SEZ or 100%
EOU, the relevant date shall be the return filing date related to such deemed
exports was filed.

8. Where refund arises due to an order passed in favour of the appellant, then
relevant date shall be the date of such order.

9. Where tax was paid following a provisional assessment and refund now arises,
then relevant date shall be date at which such tax was adjusted.

10. When the person claiming refund is not the supplier, then relevant date shall be
the date at which the goods are received by such person.

11. For all other cases, relevant date shall be the date of payment of tax.

It is mandatory to keep in mind these relevant dates as failure to file refund

applications within mentioned time can lead to blockage of credit.

Once the application made, an acknowledgement in Form RFD-02 will be auto-

generated for future references and sent across through an email and an SMS. In case
the system finds some deficiencies in the refund application, then Form RFD-
03 shall be sent to the taxpayer to correct his application.

Moreover, there are certain documents that must be enclosed along with the
electronic refund application. Where the refund application is below Rs. 5 lakhs, then
a declaration shall be made by the taxpayer indicating that the amount of refund has
not been utilised by or transferred to any other person. Where such application
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exceeds Rs. 5 lakhs, then apart from the declaration above, a document evidencing
that the amount was paid by the taxpayer shall also be attached.

When the person filing refund claim is a United Nations’ body, Consulate or a
foreign embassy, then the application for refund has to be filed within 90 days from
the end of the quarter for which the goods or services were procured. The application
should be made in Form RFD-10.

Note: There shall be no refunds where the amount of refund is less than Rs. 1,000/-.

SCRUTINY OF THE REFUND APPLICATION

As per norms, it would take about 30 days to process a refund application. Where the
refund claim exceeds a prescribed amount, then the same shall be subjected to an
audit process. If the same qualifies for a refund, then an order shall be passed to that
extent, or if it meets the criterion for being “unjustly enriching” the taxpayer, then the
amount shall be transferred to the Consumer Welfare Fund. The above declaration
may be required to be certified by a Chartered Accountant.

REFUND ORDER

When the taxpayer claims refund of monies arising out of exports of goods or
services, then an authorized officer can issue a provisional refund order in Form
RFD-04 of an amount of 90% of the refund claim. Such a provisional refund can be
made when the taxpayer:

 Has not been prosecuted for evading taxes for an amount exceeding Rs. 250
lakhs over a period of 5 years.

 Has a GST compliance rating of more than 5 out of 10.

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 Has no appeal or review pending with respect to refunds.

Where the authorised officer feels that documents are in consonance with law, then he
may pass a final order to that effect.

The Government shall maintain a cash ledger for the taxpayer. It will be constantly
updated with the figures as mentioned or declared in the returns. The credit must
match with the ledger or else the credit cannot be availed. It is similar in lines of
Form 26AS in case of Income Tax, where the amount of TDS and TCS matches with
the Form.

In all other cases, the refund application shall be processed within 60 days from the
application date. Once the authorised officer adjudges the refund to be true, then he
will issue a final order in Form RFD-05 within a period of 60 days from the
application date. If the officer fails to pass an order within the said 60 days, then the
taxpayer shall receive an interest @ 6% p.a. for the period exceeding the expiry of 60
days until the receipt of refund.

When the refund has to be adjusted against the taxable amount, then Form RFD-06
shall be passed.

Other forms that are important for refund claims:

 RFD-07: this is a show cause notice for complete rejection of a refund

application

 RFD-08: Payment advice

 RFD-09: In case of delayed payments, this is an order for interest on late

payments.

Refund of Input Tax Credit

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There are 3 cases against which a refund claim can be made with respect to input tax
credit. All the above scenarios covered refund emanating from certain specified
transactions.

1. Input tax credit left unutilized when the goods or services being supplied are
zero rated or exempted from GST.

2. When input goods or services have a higher rate of tax and the same goods or
services have a lesser output tax, then the accumulated input tax credit can be
claimed as refund.

3. In case of a partial reverse charge, where the input tax credit cannot be used
completely against the output tax.

Furthermore, no refund against unutilized input tax credit can be given when:

 Input arises out of GST paid against goods exported out of India, that were
taxable to excise duty

 The supplier has already availed the benefit of duty drawback paid with respect
to excise duty.

The process is very thorough in itself and once followed properly, then availing
refund can become very smooth and hassle free. It will change the face of the long
drawn refund process and give a boost to the manufacturing or export industry. Those
refunds, which usually took years to pass can now be taken in just 60 days. The
strong IT system and forward thinking of the GSTN have enabled this initiative.

4.5 APPEAL AND REVIEW

Tax law recognizes that on any given set of facts and laws, there can be
different opinions or viewpoints. Hence, it is likely that the taxpayer may not agree
with the “adjudication order” so passed by the tax officer. It is equally possible that
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the Department may itself not be in agreement with the adjudication order in some
cases. It is for this reason that the statute provides further channels of appeal, to both
sides.
However, since the right to appeal is a statutory right, the statute also places
reasonable fetters on the exercise of that right. The time limits prescribed by the
statute for filing of appeals and the requirement of pre-deposit of a certain sum before
the appeal can be heard by the competent authority are examples of such fetters on the
statutory right. GST being implemented in our country is a dual GST i.e. to say every
supply attracting the levy will be leviable to both Central tax and State tax. So does
this mean that if a taxpayer is aggrieved by any such transaction, he will have to
approach both the authorities for exercising his right of appeal? The answer is a plain
NO. The Act makes provisions for cross empowerment between CGST and
SGST/UTGST officers so as to ensure that if a proper officer of one Act (say CGST)
passes an order with respect to a transaction, he will also act as the proper officer of
SGST for the same transaction and issue the order with respect to the CGST as well as
the SGST/UTGST component of the same transaction. The Act also provides that
where a proper officer under one Act (say CGST) has passed an order, any
appeal/review/ revision/rectification against the said order will lie only with the proper
officers of that Act only (CGST Act). So also if any order is passed by the proper
officer of SGST, any appeal/review/revision/rectification will lie with the proper
officer of SGST only.

 APPELLATE MECHANISM
A person who is aggrieved by a decision or order passed against him by an
adjudicating authority, can file an appeal to the Appellate Authority (AA, for short). It
is important to note that it is only the aggrieved person who can file the appeal. Also,
the appeal must be against a decision or order passed under the Act. It is to be noted
that no appeals whatsoever can be filed against the following orders:-
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(a) an order of the Commissioner or other authority empowered to direct

transfer of proceedings from one officer to another officer;
(b) an order pertaining to the seizure or retention of books of account,
register and other documents; or
(c) an order sanctioning prosecution under the Act; or
(d) an order passed under section 80 (payment of tax in instalments).
The time limit for the party to file an appeal before the AA is 3 months from
the date of communication of the impugned order. But the AA may condone a delay
of up to one month, if he is satisfied that there was sufficient cause for such delay.
The AA has to follow the principles of natural justice – such as hearing the
appellant, allowing reasonable adjournments (not more than 3), permitting additional
grounds (if found reasonable), etc. The AA can also make such further inquiry as may
be necessary.
On conclusion of the appeal process, the AA will pass his order (Order-in-
Appeal) which may confirm, modify or annul the decision or order appealed against
but shall not refer the case back to the authority that passed the said decision or order.
The AA can also increase the “rigour” of the order appealed against by enhancing any
fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or
reducing the amount of refund or input tax credit, but this can only be done after the
AA has given to the appellant a reasonable opportunity of showing cause against the
proposed order. Further, if the AA is of the opinion that any tax has not been paid or
short-paid or erroneously refunded, or where input tax credit has been wrongly
availed or utilized, no order requiring the appellant to pay such tax or input tax credit
shall be passed unless the appellant is given notice to show cause against the
proposed order and the order is passed within the time limit specified under Section
73 or Section 74 of the CGST Act, 2017.
The Order-in-appeal has to be a “speaking order” i.e. it should state the points
for determination, the decision thereon and the reasons for the decision. The law
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provides an advisory time limit of 1 year from date of filing of appeal for the AA to
decide the appeal.
In general parlance an Appeal means ‘making a request’ and in legal parlance
an Appeal means ‘requesting the higher authority or court for reversal of the decision
of a lower authority or court.’

There are four levels for making appeals:

1. First Appellate Authority
2. Appellate Tribunal
3. High Court
4. Supreme Court

 First Appellate Authority –

Any aggrieved person may appeal to First Appellate Authority against the order
passed by the Adjudicating Authority.

Time period for filing Within 3 months from the date on which the order sought
appeals to be appealed against was communicated.
Further 1 month if first appellate authority is satisfied
Extension of time that Appellant was prevented by sufficient cause from
period presenting appeal
Manner of Appeal As prescribed under this Act
Amount of tax, interest, fine, fee or penalty arising from
the impugned order.
Amount required to An amount equal to 10 percent of the amount in dispute
be deposited before against which appeal was made.
appeal
In case of serious case i.e. cases involving tax liability
not less than 25 crores and Commissioner of GST has an
Cases when higher opinion and reasons in writing that they have a very good
percentage of deposit case against the tax payer, then not less than 50 percent
applies of the disputed amount is required to be deposited.
Number of
Adjournment 3 adjournment to each party
Time period for 1 year from the date on which the appeal was filed, the
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period of stay by the order of court or tribunal shall be

disposing the appeal excluded while calculating the period of one year.

 First Appellate Authority shall give an opportunity of being heard to the appellate and
as it thinks fit, confirm, modify or annul the decision or order appealed against.
 First appellate authority may also allow additional grounds of appeal which were not
specified in the appeal, if he is satisfied that the omission was not wilful and
unreasonable.
 The order of First Appellate shall be in writing and shall be communicated to the
appellant and the adjudicating authority.
 A copy of order shall also be sent to jurisdictional Commissioner of CGST or the
authority designated by him in this behalf and jurisdictional Commissioner of SGST or
the authority designated by him in this behalf.

 Appellate Tribunal –
Any person aggrieved by the order passed by First Appellate Authority may appeal to
Appellate Tribunal against such order.

Tax or input tax credit involved,

Difference in tax or input tax credit involved,
Discretionary power to refuse Or amount of fine, fee or penalty involved
to admit any appeal, if Does not exceeds rupees 1 lakhs

Within 3 months from the date on which the

Time period for filing an order sought to be appealed against was
appeal communicated.

Further 1 month if Appellate Tribunal is

satisfied that Appellant was prevented by
Extension of time period sufficient cause from presenting appeal

Time period of filing Within 45 days of receipt of the notice,

Memorandum of Cross extension of time period is allowed if Appellate
Objection Tribunal is satisfied that Appellant was
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prevented by sufficient cause from presenting

it.

As prescribed and shall accompany with

prescribed fees. No fee required for filing
Manner of Appeal Memorandum of Cross Objection.

Amount of tax, interest, fine, fee or penalty

arising from the impugned order.
Amount required to be An amount equal to 10 percent of the amount
deposited before appeal in dispute against which appeal was made.

In case of serious case i.e. cases involving tax

liability not less than 25 crores and
Commissioner of GST has an opinion and
reasons in writing that they have a very good
case against the tax payer then not less than 50
Cases when higher percentage percent of the disputed amount is required to be
of deposit applies deposited.

Confirming, modifying or annulling the order

appealed against
Refer the case back to the First Appellate
Authority, or Revisionary Authority or to the
Disposing of appeal by original Adjudicating Authority for a fresh
Appellate Tribunal adjudication or decision

Powers of Appellate Tribunal Appellate Tribunal Shall vest with same power
as are vested in a court under the Code of Civil
Procedure, namely
1) Discovery and inspection
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2) Enforcing the attendance of a person and

examining him on oath,
3) Compelling the production of books of
accounts and other documents, and
4) Issuing Commission

Number of Adjournment 3 adjournment to each party

1 year from the date on which the appeal was

filed, the period of stay by the order of court or
Time period for disposing the tribunal shall be excluded while calculating the
appeal period of one year.

 Appellate Tribunal shall give an opportunity of being heard to the appellate and
no order which has an effect of enhancing the assessment or reducing a refund
or input tax credit or otherwise increasing the tax liability unless the Appellate
Tribunal has given a notice to him of its intention to do so and provide him
reasonable opportunity of being heard.
 Appellate tribunal may also allow additional grounds of appeal which were not
specified in the appeal, if he is satisfied that the omission was not wilful and
unreasonable.
 The order of Appellate Tribunal shall be in writing and shall be communicated
to the appellant, First Appellate Authority and the adjudicating authority.
 A copy of order shall also be sent to jurisdictional Commissioner of CGST or
the authority designated by him in this behalf and jurisdictional Commissioner
of SGST or the authority designated by him in this behalf.
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 High Court
– Any person aggrieved by the order passed by Appellate Tribunal may appeal to the
High Court against such order and High Court may admit such appeal if it is satisfied
that the case involve substantial question of law.

1) A matter where two or more States, or a

State and Center, have different views
regarding the treatment of a transaction(s)
being intra-State or inter-State, or
2) A matter where two or more States, or a
In following cases no appeal State and Center, have different views
can be filed in High Court regarding place of supply.
1) It has not been determined by the Appellate
Tribunal
2) It has been wrongly determined by the
High Court may determine any Appellate Tribunal and such case involves a
issue, if question of law.
Within 180 days from the date on which the
order sought to be appealed against was
communicated.
High may admit an appeal after the expiration
of 180 if satisfied that Appellant was prevented
Time period for filing an appeal by sufficient cause from presenting appeal.
As prescribed and shall accompany with
prescribed fees.
Form of Memorandum of Appeal shall
precisely state the substantial question of law
Manner of Appeal involved.
Heard by a bench of not less than 2 judges of
High Court, and shall be decided on the basis
of their opinion. Where there is no such
majority the judges shall state the point of law
to other one or more judges of High Court and
Disposing of appeal by High accordingly on the basis of opinion of majority
Court the case shall be disposed.
Powers of High Court High Court shall vest with same power as are
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vested in a court under the Code of Civil

Procedure, namely
1) Discovery and inspection
2) Enforcing the attendance of a person and
examining him on oath,
3) Compelling the production of books of
accounts and other documents, and
4) Issuing Commission

High Court may also allow appeal on any other substantial question of law formulated
by it, if satisfied that the case involve such question.

The law provides that either side (department or party), if aggrieved by any order
passed by the State Bench or Area Bench of the Tribunal, may file an appeal to the
High Court and the High Court may admit such appeal if it is satisfied that the case
involves a substantial question of law. It is to be noted that on facts, the tribunal is the
final authority. Appeals to the High Court are to be filed within 180 days, but the HC
has the power to condone delay on being satisfied of sufficient cause for the same. On
being satisfied that a substantial question of law is involved, the High Court shall
formulate that question, and the appeal shall be heard only on the question so
formulated. However, the High Court has the power to hear the appeal on any other
substantial question of law, if it is satisfied that the case involves such question. The
High Court shall decide the questions of law so formulated and deliver such judgment
thereon containing the grounds on which such decision is founded and may award
such cost as it deems fit. The High Court may determine any issue which has not been
determined by the Tribunal or has been wrongly determined by the Tribunal, by
reason of a decision on such questions of law.

 Supreme Court

An appeal shall lie to Supreme Court from:

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1. Any order passed by the High Court, on its own motion or an application by
aggrieved party, or

2. Any order passed by Appellate Tribunal in the matter relating to where two or
more States, or a State and Center, have different views regarding the treatment
of a transaction(s) being intra-State or inter-State, or where two or more States,
or a State and Center, have different views regarding place of supply.

General Points Relating to Appeal

1. The Board shall time to time recommend council the monetary limit for the
purpose of filing application or appeal by GST officers under this Act.

2. Any person who is entitled or required to appear before any GST officer or
Court can Appoint an Authorised Representative on his behalf.

3. While calculating the time period, a stay by any tribunal or court shall be
excluded.

4.6 SPECIAL PROVISIONS RELATING TO

CASUAL TAXABLE PERSON AND NON-
RESIDENT TAXABLE PERSON

According to clause 27 of The Central Goods And Services Tax Bill, 2017

(1) The certificate of registration issued to a casual taxable person or a

nonresident taxable person shall be valid for the period specified in the
application for registration or ninety days from the effective date of
registration, whichever is earlier and such person shall make taxable supplies
only after the issuance of the certificate of registration:
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Provided that the proper officer may, on sufficient cause being shown by
the said taxable person, extend the said period of ninety days by a further
period not exceeding ninety days.

(2) A casual taxable person or a non-resident taxable person shall, at the

time of submission of application for registration under sub-section (1) of
section 25, make an advance deposit of tax in an amount equivalent to the
estimated tax liability of such person for the period for which the registration is
sought: Provided that where any extension of time is sought under sub-section
(1), such taxable person shall deposit an additional amount of tax equivalent to
the estimated tax liability of such person for the period for which the extension
is sought.

(3) The amount deposited under sub-section (2) shall be credited to the
electronic cash ledger of such person and shall be utilised in the manner
provided under section 49.