GST UPDATE

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Circular No. 207/1/2024-GST: Summary of the Policy on Reducing Government Litigation and Fixing Monetary Limits for Filing Appeals

 Reference to National Litigation Policy

Objective: Optimize judicial resources and expedite resolution of cases.

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Guidelines: Appeals should not be filed for cases below specified monetary limits and where established precedents exist.

 Section 120 of the CGST Act

Authority: Empowers the Central Board of Indirect Taxes & Customs (CBIC) to set monetary limits for filing appeals.

Monetary Limits for Filing Appeals

 GST Appellate Tribunal (GSTAT): ?20,00,000

High Court: ?1,00,00,000

Supreme Court: ?2,00,00,000

 Principles for Determining Applicability of Monetary Limits

1.Demand of Tax: Aggregate amount of disputed tax, penalty, and interest.

2 Demand of Interest Only: Amount of interest in dispute.

3 Penalty Only: Amount of penalty in dispute.

4 Late Fee Only: Amount of late fee in dispute.

5 Interest, Penalty, Late Fee: Aggregate amount of all.

6 Erroneous Refund: Disputed refund amount.

7 Composite Orders: Total disputed amount across all appeals/demands.

 Exclusions from Monetary Limits

 Constitutional Issues: Cases where provisions/rules are held ultra vires.

-Government Orders: Cases involving ultra vires government notifications or instructions.

 Recurring Issues: Valuation, classification, refunds, place of supply, and other recurring issues.

-Adverse Comments: Cases with strictures, adverse comments, or costs against the government.

-Special Cases: Any case deemed necessary by the Board for justice or revenue.

 Filing Appeals Based on Merits

Appeals should be filed based on merits, even if the disputed amount exceeds monetary limits.

 Non-Filing of Appeals and Precedent Value

No Precedent: Decisions not appealed due to monetary limits should not be considered as precedents.

Reviewing Authority: Must record that the appeal is not filed due to the monetary limit.

Departmental Representatives: Must inform GSTAT or courts that non-filing is due to monetary limits and not acceptance of the decision.

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CA. Praveen Sharma 

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