GST Appeal Against Demand Order in India – Section 107, APL-01 and Pre-Deposit 2026

A GST appeal against demand order allows an eligible taxpayer to challenge an adverse decision or order passed by a GST adjudicating authority. A demand may involve alleged tax short-payment, excess input tax credit, erroneous refunds, interest, penalties or other liabilities under the Goods and Services Tax law.

Under Section 107 of the Central Goods and Services Tax Act, 2017, an aggrieved person may generally file a first appeal within three months from communication of the order. The Appellate Authority may allow a further one month where sufficient cause is established. FORM GST APL-01 is used for the prescribed first appeal.

For ordinary tax-demand appeals, the taxpayer is generally required to pay admitted liabilities and a pre-deposit equal to 10% of the remaining disputed tax, subject to the applicable statutory ceiling and special rules.

Important 2026 update: GSTAT is operational. The special deadline of 31 July 2026 for specified legacy Tribunal appeals has already passed. New Tribunal appeals and cases involving older orders must be examined according to Section 112, the applicable notifications and available legal remedies.

EzyBiz India Consulting LLP provides Chartered Accountant-led assistance with GST demand-order review, appeal limitation, pre-deposit calculations, preparation of statement of facts and grounds of appeal, FORM GST APL-01 filing and related litigation support.

Received a GST demand order? Call +91 98992 17778, email anil@ezybizindia.in or WhatsApp our GST litigation team.

For wider advisory and representation services, visit our GST Assessment and Litigation Services and the main GST and Indirect Tax Advisory Services page.

GST Appeal Against Demand Order – Overview

What Is a GST Demand Order?

A GST demand order is a decision issued by the competent authority determining tax, interest, penalty or other liabilities under the applicable GST provisions.

The complete order should contain the findings and reasoning supporting the liability determined against the taxpayer.

Difference between GST Show Cause Notice and Demand Order

A show cause notice proposes action and gives the taxpayer an opportunity to respond. A demand order is the decision reached after the prescribed adjudication process.

FORM GST DRC-01 is generally a summary of a show cause notice, while FORM GST DRC-07 communicates a summary of an adjudication order.

When Should a Taxpayer Consider an Appeal?

An appeal should be considered where the order incorrectly interprets the law, disregards relevant documents, contains an erroneous demand calculation or suffers from a material procedural defect.

The merits, limitation, pre-deposit and likely cost of litigation should be evaluated before filing.

GST Demand Orders under Sections 73, 74 and 74A

Section 73 – Earlier Non-Fraud Demand Cases

Section 73 applies to specified determination proceedings for periods up to FY 2023-24 where fraud, wilful misstatement or suppression of facts to evade tax is not alleged.

The taxpayer should verify whether the demand is correctly computed and whether the applicable statutory limitation has been followed.

Section 74 – Fraud and Suppression Allegations

Section 74 applies to relevant cases up to FY 2023-24 involving alleged fraud, wilful misstatement or suppression of facts to evade tax.

Where intentional wrongdoing has been alleged, the grounds of appeal should address the factual basis of that allegation, apart from the underlying tax demand.

Section 74A – FY 2024-25 Onward

Section 74A provides the relevant determination framework for FY 2024-25 onward for tax short-payment, erroneous refunds and wrongful ITC.

Penalty consequences depend on whether the statutory findings establish fraud, wilful misstatement or suppression of facts.

Provision	Relevant Period	Nature of Proceedings
Section 73	Up to FY 2023-24	Specified non-fraud cases
Section 74	Up to FY 2023-24	Specified fraud or suppression cases
Section 74A	FY 2024-25 onward	Common determination framework with differentiated penalties

Refer to the CBIC Tax Information Portal for the statutory provisions applicable to the relevant tax period.

What to Check Immediately after Receiving a GST Demand Order

Check the Date of Communication

The first priority is to identify the date on which the decision or order was legally communicated to the taxpayer.

The ordinary first-appeal limitation is calculated with reference to communication of the order, not merely when the taxpayer decides to challenge it.

Obtain the Complete Adjudication Order

Download the complete speaking order, all annexures, the relevant DRC-07 summary and related communications.

The amount displayed in the electronic liability ledger does not replace a detailed review of the order itself.

Compare the SCN, Reply and Final Findings

Prepare an issue-wise comparison showing the allegations in the show cause notice, submissions made by the taxpayer and conclusions recorded in the final order.

Identify unsupported additions, calculation differences, missing consideration of documents and grounds introduced beyond the original notice.

Who Can File a GST Appeal under Section 107?

Persons Eligible to File a First Appeal

Any person aggrieved by an appealable decision or order passed by an adjudicating authority under the relevant GST law may generally file a first appeal, subject to Section 107.

This may include registered taxpayers and, in appropriate circumstances, unregistered persons.

Orders Which May Be Appealed

Appealable decisions may involve tax demands, input tax credit, refunds, penalties, registration and other matters where the legislation provides an appeal.

The exact appellate authority depends on the nature of the order and the relevant jurisdiction.

Orders Not Appealable under Section 121

Section 121 excludes certain decisions from appeal, including prescribed orders relating to transfer of proceedings, seizure or retention of books, sanction for prosecution and Section 80 matters.

Businesses must verify that the proposed appeal is maintainable before preparing FORM GST APL-01.

Time Limit for GST Appeal against Demand Order

Three-Month Time Limit under Section 107

The normal limitation under Section 107(1) for a taxpayer’s first appeal is three months from communication of the decision or order.

Keep evidence of portal service, electronic communication and other relevant records for limitation purposes.

Further One-Month Condonation

Section 107(4) permits the Appellate Authority to allow filing within a further one month if sufficient cause prevented the taxpayer from filing within the normal period.

The additional month is not an automatic extension, and the reasons for delay should be supported by appropriate evidence.

Appeal after Expiry of the Condonable Period

An appeal beyond the normal and statutorily condonable period raises serious limitation questions.

The taxpayer should immediately examine the applicable statutory position, relevant judicial decisions and any exceptional legal remedies instead of assuming that delay can always be condoned.

For a detailed review of the original notice and proceedings, see our GST Notice Reply Services.

GST Appeal Pre-Deposit under Section 107

Payment of Admitted Tax and Other Dues

Section 107(6) requires payment of the admitted amount of tax, interest, fine, fee and penalty arising from the impugned order.

Prepare a clear reconciliation distinguishing admitted and disputed amounts before filing the appeal.

10% of Remaining Disputed Tax

For an ordinary tax-demand appeal, the taxpayer is required to deposit 10% of the remaining disputed tax, subject to the statutory maximum of ₹20 crore under the applicable CGST provision.

Corresponding requirements under other GST enactments and special categories of orders must be considered separately.

Example of GST Appeal Pre-Deposit

Assume a GST order determines tax of ₹20,00,000, interest of ₹4,00,000 and penalty of ₹2,00,000.

If the taxpayer disputes the entire tax demand and admits none of the liability, the ordinary Section 107 tax pre-deposit would be ₹2,00,000, being 10% of ₹20,00,000, subject to any applicable special requirements.

Particulars	Amount
Tax demand	₹20,00,000
Interest in dispute	₹4,00,000
Penalty in dispute	₹2,00,000
Disputed tax for ordinary pre-deposit illustration	₹20,00,000
Pre-deposit at 10% of disputed tax	₹2,00,000

The example excludes additional admitted liabilities, special-order requirements and other case-specific statutory considerations.

Penalty-Only Appeals and Special Pre-Deposit Rules

Penalty-Only Demand Orders

Section 107 includes a special pre-deposit requirement for appeals against orders demanding penalty without any demand of tax.

Under the applicable provision, the required deposit is generally 10% of the disputed penalty. Verify the statutory text and tax-period applicability before making payment.

Detention and Seizure Related Orders

Appeals against specified orders under Section 129(3) have a separate pre-deposit rule, including the relevant requirement concerning 25% of the penalty.

Such cases should not be processed using only the ordinary 10% disputed-tax calculation.

Correct Allocation between GST Tax Heads

Review the disputed and admitted amounts separately for CGST, SGST, IGST and compensation cess, as applicable.

Portal payment availability, credit utilisation and statutory restrictions should be verified before making the appeal pre-deposit.

Stay of GST Demand Recovery after Appeal

Deemed Stay under Section 107(7)

Where the required amount under Section 107(6) is paid, recovery proceedings for the remaining amount are deemed stayed in accordance with Section 107(7).

This provides an important statutory protection for eligible taxpayers challenging a demand order.

What If Recovery Has Already Started?

Where attachment, recovery or other coercive action has begun, the taxpayer should review the timeline and legality of recovery together with the appeal status.

Submit relevant proof of the appeal and pre-deposit to the appropriate authority and evaluate whether any further protective action is needed.

Stay versus Waiver of Tax Demand

A stay of recovery does not mean that the disputed demand has been cancelled.

The ultimate liability depends on the outcome of the appeal and any subsequent proceedings.

How to File GST Appeal Online in FORM GST APL-01

Step 1 – Login to the GST Portal

Visit the official GST Portal and log in with valid credentials.

Navigate to Services > User Services > My Applications and select Appeal to Appellate Authority, where available.

Step 2 – Select Order and Prepare Appeal Details

Select Demand Order as the relevant order type, identify the impugned order and complete the required appeal information.

Prepare the statement of facts, grounds of appeal, disputed amount details, payment particulars and supporting documents.

Step 3 – Submit and Obtain Acknowledgement

Complete the prescribed pre-deposit and submit the appeal using the applicable electronic verification mechanism.

Follow Rule 108 requirements concerning the impugned order and acknowledgement. Preserve FORM GST APL-02 and the final filing records.

For current procedural instructions, see the GST Portal’s Official Appeal against Demand Order FAQs.

Documents Required for Filing GST Demand Appeal

Demand Order and Departmental Records

Keep the following documents ready:

• Complete adjudication order
• DRC-07 summary
• Original show cause notice and DRC-01
• Earlier replies and supporting submissions
• Personal hearing records
• Applicable departmental correspondence
• Evidence of the order’s communication

GST Returns and Accounting Records

Depending on the dispute, relevant records may include GSTR-1, GSTR-3B, GSTR-2B, purchase and sales registers, invoices, financial statements, electronic ledgers and reconciliations.

Documents should be organised by issue and tax period so that they can be easily referenced in the appeal.

Authorisation and Appeal Documentation

Prepare the applicable authority letter, completed appeal particulars, statement of facts, grounds of appeal, annexures, pre-deposit evidence and any delay-condonation request.

For statutory books and documents, read our Accounts and Records under GST guide.

Common Grounds of Appeal against GST Demand Orders

Incorrect Demand Computation or Reconciliation

One important ground may arise where the Department incorrectly treats differences between GST returns and accounting records as taxable omissions without considering adjustments or reconciliation.

The appeal should demonstrate the mathematical and factual position using relevant evidence.

Violation of Natural Justice

Depending on the facts, an order may be challenged where the taxpayer was denied an effective opportunity of hearing, relevant evidence was ignored or procedural requirements were materially violated.

Such allegations should be supported by actual notice, reply and hearing records.

Order beyond the Show Cause Notice

Section 75 contains safeguards relating to the scope of adjudication, including the requirement that an order should not confirm demand on grounds other than those specified in the notice.

Compare the original allegations and final findings to identify any legally relevant departure.

GST Appeals Involving ITC and Return Mismatches

GSTR-2B and GSTR-3B ITC Differences

Input tax credit disputes may arise from GSTR-2B differences, supplier reporting, time limits, blocked credits and reversal requirements.

Prepare an invoice-wise reconciliation and examine the statutory conditions applicable to the particular financial year.

GSTR-1 and GSTR-3B Turnover Differences

Demand orders may arise from differences between outward supply details and GST liability returns.

Review tax-period differences, credit notes, advance adjustments, amendments, zero-rated supplies and exempt transactions before deciding whether the difference represents unpaid tax.

Supplier Default and Invoice Genuineness

ITC orders may involve disputed supplies, allegations of fake invoices, supplier default or absence of commercial evidence.

The appeal should assess applicable legal requirements alongside invoices, transport documents, bank statements and other evidence relevant to the actual transactions.

For related notice handling and tax reconciliations, see our GST Notice Reply Services.

Rectification, Appeal and Other Remedies

Rectification under Section 161

Where an order contains an error apparent on the face of the record, rectification under Section 161 may be available subject to its statutory conditions and limitation.

Rectification is not a substitute for a substantive appeal involving disputed facts or interpretation.

Does Rectification Extend Appeal Limitation?

Filing a rectification application should not be assumed automatically to extend the limitation period under Section 107.

The taxpayer should independently monitor the appeal deadline while evaluating the appropriate remedy.

Additional Evidence and Hearing before Appellate Authority

The appellate procedure contains requirements governing evidence, hearings and consideration of matters raised in appeal.

Where evidence was not submitted during adjudication, the taxpayer should examine the conditions for its admission rather than assuming it can be introduced without restriction.

GSTAT Second Appeal under Section 112 in 2026

When Can an Appeal Be Filed before GSTAT?

A further appeal may lie to the Goods and Services Tax Appellate Tribunal against eligible orders passed by the first Appellate Authority or Revisional Authority, subject to Section 112.

The Tribunal is operational and has its own prescribed procedural and electronic filing requirements.

FORM GST APL-05 and Additional Pre-Deposit

Taxpayer appeals before GSTAT are filed using the prescribed FORM GST APL-05 process.

Under the applicable statutory framework, an additional pre-deposit of 10% of the remaining disputed tax is generally required, in addition to the first appeal deposit, subject to the prescribed ceiling and relevant exceptions.

GSTAT Limitation and July 2026 Legacy Deadline

Special transitional notifications extended the filing date for specified older GSTAT appeals to 31 July 2026.

That date has passed as at October 2026. Appeals relating to orders communicated on or after 1 May 2026 generally follow the applicable three-month Section 112 framework, subject to the relevant provisions and legally available relief.

Check the Official GSTAT Website, GSTAT e-Filing Portal and the Government’s June 2026 GSTAT Deadline Announcement.

GST Appeal Filing Services by EzyBiz India

Review of GST Demand Order and Appeal Merits

EzyBiz India Consulting LLP assists businesses with reviewing adjudication orders, identifying disputed issues, assessing limitation and evaluating the legal and factual merits of an appeal.

Our team supports Indian businesses, private limited companies, LLPs, exporters, manufacturers, service providers and foreign-owned subsidiaries.

Preparation of FORM GST APL-01 and Appeal Grounds

Our services may include:

• Detailed demand-order review
• Analysis of Sections 73, 74 and 74A
• Appeal limitation calculation
• Admitted and disputed liability reconciliation
• Pre-deposit computation
• Drafting statement of facts
• Drafting grounds of appeal
• Preparation of FORM GST APL-01
• Compilation of supporting documents
• Filing and acknowledgement assistance
• Written submissions and hearing preparation
• Review of appellate orders and further remedies

Representation and Further GST Litigation

We assist with first appellate proceedings and professional coordination for eligible GSTAT and other litigation matters, subject to applicable representation rules.

Where specialised advocacy is required, the engagement can be coordinated with appropriate legal counsel.

Professional fees depend on the demand amount, number of issues, periods involved and scope of representation.

Frequently Asked Questions on GST Appeal against Demand Order

What Is the Time Limit for GST Appeal?

A first appeal under Section 107 is ordinarily filed within three months from communication of the order. An additional one-month period may be condoned upon sufficient cause.

What is the pre-deposit for GST first appeal?

In an ordinary tax-demand appeal, the prescribed pre-deposit is 10% of the remaining disputed tax, in addition to admitted liabilities, subject to statutory limits and special rules.

Is APL-01 used for challenging a GST demand order?

Yes. FORM GST APL-01 is the prescribed form for a first appeal to the Appellate Authority.

Can GST recovery be stayed after filing an appeal?

Section 107(7) provides a deemed stay of recovery of the remaining amount when the prescribed payment conditions under Section 107(6) are satisfied.

Can an Appeal Be Filed against DRC-07?

The underlying adjudication decision or order reflected in DRC-07 may generally be appealed if it is an appealable order. The complete speaking order must be examined.

Can an appeal be filed after four months?

Filing beyond the statutory condonable period raises serious limitation issues and requires immediate examination of applicable law and available remedies.

Can the Appellate Authority remand a GST case?

Section 107(11) generally provides that the Appellate Authority may confirm, modify or annul the decision or order appealed against but shall not refer the case back to the original adjudicating authority.

Can EzyBiz India Assist with GST Appeal Filing?

Yes. We assist with demand-order review, limitation, pre-deposit calculations, appeal drafting, document preparation, APL-01 filing and related litigation support.

Mobile: +91 98992 17778
Email: anil@ezybizindia.in
WhatsApp: Speak with Our GST Appeal Team

Related Services and Supporting GST Guides

• GST and Indirect Tax Advisory Services – Main Pillar
• GST Assessment and Litigation Services
• GST Notice Reply Services
• GST Audit Services
• GST Audit Checklist
• GST Return Filing Services
• GST Return Filing Process
• Accounts and Records under GST
• GST Refund Services
• GST Refund Difficulties Faced by Exporters
• GST Registration Cancellation and Revocation
• GST Registration Cancellation for Non-Filers
• Accounting and Bookkeeping Services
• Income Tax Assessment and Litigation Services

Official GST and Regulatory References

• GST Portal – Government of India
• CBIC – Section 107: Appeals to Appellate Authority
• GST Portal – Appeal against Demand Order FAQs
• CBIC Tax Information Portal – CGST Act and Rules
• GST Appellate Tribunal – Official Website
• GSTAT Electronic Filing Portal
• Ministry of Finance – GSTAT Deadline Extension June 2026
• GST Council
• India Code – Indian Legislation

Contact EzyBiz India Consulting LLP

Mobile: +91 98992 17778

Email: anil@ezybizindia.in

WhatsApp: Contact Our GST Appeal Team

Reviewed By: CA Anil Agrawal, Founder, EzyBiz India Consulting LLP.

Last Updated: October 2026.

Disclaimer: This article provides general information on GST appeals against demand orders in India and does not constitute transaction-specific tax or legal advice. Appeal maintainability, limitation, pre-deposit, stay of recovery, rectification, filing procedures and available remedies depend on the actual order, its communication date, tax period and applicable statutory provisions. Sections 73 and 74 and Section 74A apply to different financial-year periods. The GSTAT transitional deadline of 31 July 2026 should not be treated as an open deadline as at October 2026. Taxpayers should examine the latest CGST Act, applicable SGST provisions, rules, notifications, portal procedures and judicial decisions and obtain appropriate professional advice before taking action.