Section 107 is the first appeal against an adjudication order. The appeal must be filed within three months, with the admitted dues and a pre-deposit of 10% of the disputed tax; the balance is then stayed. The Appellate Authority can confirm, modify or annul, but cannot send the case back.
Key points
- Under section 107(1) of the CGST Act, 2017 any person aggrieved by a decision or order of an adjudicating authority may appeal within three months of its communication (Form GST APL-01, Rule 108).
- The Commissioner may direct a departmental appeal within six months (section 107(2)–(3)).
- Delay may be condoned for sufficient cause by one further month only (section 107(4)); the Appellate Authority has no power beyond that, following Singh Enterprises v CCE (Supreme Court, 2007) on the identical excise provision.
- The appellant must pay the admitted amount in full and 10% of the disputed tax, capped at Rs. 20 crore from 01.11.2024 (Rs. 25 crore before); from 01.10.2025, for an order demanding only penalty, 10% of the penalty (section 107(6)). Recovery of the balance is then stayed (section 107(7)).
- The Appellate Authority cannot remand the case (section 107(11)); it should decide within one year where possible (section 107(13)).
The provisions
107(1)–(5)Who may appeal; time limits
Statutory text
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.
(5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.
* Enforced w.e.f. 1st July, 2017.
- Rules 108–109A, CGST Rules; Forms GST APL-01 to APL-04
Case on this provision
Singh Enterprises v Commissioner of Central Excise, Jamshedpur
(2008) 3 SCC 70 · 14.12.2007 · Supreme Court, 2 Judges (Arijit Pasayat, Aftab Alam JJ.)
- Facts
- An appeal to the Commissioner (Appeals) under section 35 of the Central Excise Act, 1944 — which allowed sixty days, extendable by thirty days for sufficient cause — was filed about twenty-one months after the order and dismissed as time-barred.
- Held
- The proviso permits condonation only up to thirty days beyond the normal period; the appellate authority has no power to condone delay beyond that, and section 5 of the Limitation Act cannot be invoked to enlarge it.
- Since then
- Section 107(4) is drafted on the same pattern, with three months plus one month.
- Here
- An appeal filed more than four months after communication of the order cannot be admitted by the Appellate Authority, whatever the reason; the only recourse is a writ petition in exceptional circumstances.
107(6)–(7)Pre-deposit and stay
Statutory text
(6) No appeal shall be filed under sub-section (1), unless the appellant has paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, 1[subject to a maximum of 3[twenty] crore rupees], in relation to which the appeal has been filed.
2[Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty has been paid by the appellant.]
(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed.
1. Inserted by s. 25 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
3. Substituted by section 141 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024 for "twenty-five".
2. Inserted (w.e.f. 01.10.2025) by s. 129 of The Finance (No. 7) Act, 2025.
What it means
The pre-deposit is computed on the tax in dispute, not on interest or penalty, except in penalty-only orders where 10% of the penalty is payable (proviso, from 01.10.2025). It may be paid in cash or, for output tax, from the credit ledger. Once paid, recovery of the balance is deemed stayed until the appeal is decided.
CBIC note 2 refers to the "Finance (No. 7) Act, 2025"; the proviso was inserted by the Finance Act, 2025 (No. 7 of 2025) from 01.10.2025. The Rs. 20 crore cap (note 3) is in force from 01.11.2024 (Notification 17/2024-Central Tax).
107(8)–(16)Hearing, powers and order
Statutory text
(8) The Appellate Authority shall give an opportunity to the appellant of being heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.
(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:
Provided that an order 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 shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:
Provided further that where the Appellate Authority 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 utilised, 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 4[or section 74A].
(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.
(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties.
4. Inserted by section 141 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
What it means
The appellant must be heard; at most three adjournments are allowed. The Appellate Authority may admit additional grounds, and may enhance a penalty or reduce a refund or credit only after notice; it may raise a new tax demand only after notice and within the time limits of section 73, 74 or 74A. It may not remand the matter to the adjudicating authority.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the time limit for a GST first appeal?
- Three months from communication of the order, extendable by one month for sufficient cause (section 107(1) and (4) CGST); no further extension is possible.
- How much pre-deposit is required for a GST appeal?
- The admitted amount in full and 10% of the disputed tax, up to Rs. 20 crore; for an order demanding only penalty, 10% of the penalty (section 107(6) CGST).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The three months run from communication of the order — usually its upload on the portal. Because the further month is the outer limit, the Limitation Act's general power to condone delay does not apply; High Courts have occasionally intervened under Article 226 in exceptional cases, such as orders not effectively communicated.