How to Appeal a GST Demand Order: Section 107 First Appeal and GSTAT (2026 Guide)

When a GST officer passes a demand order (summary in Form DRC-07), recovery can start soon afterwards, including attachment of bank accounts. An appeal filed on time with the required pre-deposit stops recovery of the balance and gives you a fresh hearing on the merits. This guide covers both stages: the first appeal and the GST Appellate Tribunal (GSTAT).

Stage 1: Appeal to the Appellate Authority (Section 107)

• Form: APL-01, filed online on the GST portal
• Time limit: 3 months from the date the order is communicated. The Appellate Authority can condone a further 1 month of delay for sufficient cause, but no more.
• Pre-deposit: the full amount of tax, interest, fine, fee and penalty that you admit, plus 10% of the disputed tax (subject to the statutory cap)
• Effect: once the pre-deposit is paid, recovery of the balance is deemed stayed

Stage 2: Appeal to the GST Appellate Tribunal (Section 112)

GSTAT has now started functioning and accepting appeals, which gives taxpayers a real second forum after years of waiting.

• Form: APL-05
• Time limit: 3 months from communication of the first appellate order
• Pre-deposit: a further 10% of the tax that remains in dispute, over and above the first-stage pre-deposit
• Backlog appeals: special cut-off dates were notified for orders passed before GSTAT became operational. If you have an older appellate order that was never taken further, check at once whether a window is still open.

Grounds that carry weight in GST appeals

• Limitation: SCN or order issued after the time limit in Section 73, 74 or 74A
• Wrong section: for example, Section 73 or 74 invoked for FY 2024-25, where Section 74A applies
• Natural justice: no personal hearing, or the reply not considered
• Order beyond the SCN: the demand exceeds or differs from what was proposed
• Merits: genuine ITC denied only for a 2A/2B mismatch, classification or valuation errors, or duplicate demands

Practical checklist before filing

1. Get the certified order, the SCN and your reply together in one file.
2. Calculate the pre-deposit exactly and pay it through the electronic cash or credit ledger, as permitted.
3. Draft the statement of facts and the grounds of appeal. Weak grounds cannot easily be added later.
4. Keep proof of filing and payment, and write to the proper officer asking that recovery be stayed.

Watch the calendar

For FY 2022-23, orders under Section 73 must be passed by 31 December 2026. A large number of orders can be expected in the last quarter of 2026, which puts their 3-month appeal windows in early 2027. If you have a pending SCN for that year, prepare your appeal file now.

Read more: GST appeal services · Show cause notices under Section 73, 74 and 74A

This article is general information and is not legal advice. Pre-deposit percentages and caps are as per the CGST Act as amended; confirm the current position for your case.