Appeals, Revision, Advance Ruling, Offences, Penalties and Transition
This domain tests appellate remedies, the advance ruling mechanism, penal and prosecution provisions, and the transitional framework that carried credits and pending proceedings into GST.
Appeals and revision
Section 107 allows a first appeal within three months, with a further 30 days for sufficient cause, on pre-deposit of 10% of disputed tax, capped at ₹20 crore each under CGST and SGST. Section 112 provides appeal to the GST Appellate Tribunal within three months on additional pre-deposit of 20%, capped at ₹50 crore. Section 108 allows revision by the Commissioner. Section 109 provides appeal to the High Court on substantial questions of law.
Advance ruling
Sections 95 to 106 govern advance rulings. An applicant may seek a ruling on supply, taxability, valuation, ITC, registration or procedure. The Authority for Advance Ruling and the Appellate Authority for Advance Ruling decide; the ruling binds the applicant and the jurisdictional officer in respect of the applicant. It is prospective unless the applicant pleads otherwise.
Offences and penalties
Section 122 lists penalties, including 10% of tax or ₹10,000, whichever is higher, for tax evasion. Section 125 is the general penalty up to ₹25,000. Section 132 provides prosecution for specified offences above monetary thresholds, generally ₹5 crore except for invoice-related and specified offences. Section 137 permits compounding.
Transition
Sections 139 to 142 allowed carrying forward of credits through TRAN-1, treatment of pending refunds, and transition of job work and stock held on the appointed day.
Worked example
A taxpayer disputes ₹50,00,000 of tax before the first appellate authority. The pre-deposit under section 107 is 10%, that is ₹5,00,000; on further appeal to the Tribunal, an additional 20% (₹10,00,000) is payable.
Traps
- Treating an advance ruling as binding on all units of the department.
- Filing a first appeal before the Tribunal instead of the Commissioner (Appeals).
- Ignoring the higher penalty exposure under section 74 for fraud.