Section 120 lets the CBIC set monetary limits for departmental appeals, so that small disputes are not litigated further. Not appealing in one case does not bind the department in others.
Key points
- Under section 120(1) of the CGST Act, 2017 the Board, on the Council's recommendation, may fix monetary limits for appeals and applications by central tax officers.
- Circular 207/1/2024-GST fixed the limits at Rs. 20 lakh for the Appellate Tribunal, Rs. 1 crore for the High Court and Rs. 2 crore for the Supreme Court, subject to exceptions such as constitutional validity of a provision.
- A decision not to appeal under these limits does not preclude an appeal in another case on the same issue, and no one may argue that the department acquiesced (section 120(2)–(4)).
The provisions
120(1)–(4)Appeal not to be filed in certain cases
Statutory text
(1) The Board may, on the recommendations of the Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the central tax under the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the central tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the central tax from filing appeal or application in any other case involving the same or similar issues or questions of law.
(3) Notwithstanding the fact that no appeal or application has been filed by the officer of the central tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the central tax has acquiesced in the decision on the disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the central tax in pursuance of the orders or instructions or directions issued under sub-section (1).
*Enforced w.e.f. 1st July, 2017.
- Circular 207/1/2024-GST, 26.06.2024 — monetary limits
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 are the monetary limits for GST departmental appeals?
- Rs. 20 lakh for the Tribunal, Rs. 1 crore for the High Court and Rs. 2 crore for the Supreme Court (Circular 207/1/2024-GST under section 120 CGST).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The limits apply to the amount of tax in dispute (or, where there is no tax, to the penalty or fine), not to interest.