Goods and Services Tax (GST) and Corporate Tax Planning · Assessment, Audit, Scrutiny, Demand and Recovery, Advance Ruling, Appeals and Revision

Appeals and Revision under GST: Sections 107 and 108

Updated 11 October 2026 · Fact-checked

An appeal under GST is a remedy for a person aggrieved by an adjudicating authority's order. Under section 107, you file it within three months of communication, after paying the admitted dues plus 10% of disputed tax, capped at ₹20 crore. Section 108 lets a Revisional Authority revise orders that harm revenue.

Understand Appeals and Revision under GST

GST disputes start with an order from an adjudicating authority, such as an order raising a demand or rejecting a refund. If you disagree, you do not go to court first. The Act gives you a ladder of remedies, and the first rung is an appeal to the Appellate Authority under section 107.

Section 107 works in two directions. A taxpayer can appeal under sub-section (1). The department can also act: the Commissioner may call for the record on his own motion, or on request from the State or Union territory Commissioner, to check legality or propriety. He can then direct a subordinate officer to apply to the Appellate Authority within six months. That application is treated like an appeal, with the officer as the appellant.

The Appellate Authority must hear the appellant. It can confirm, modify or annul the order, but it cannot send the case back to the adjudicating authority. It may pass an order enhancing any fee, penalty or fine in lieu of confiscation, confiscating goods of greater value, or reducing the amount of refund or input tax credit, only after the appellant has been given a reasonable opportunity of showing cause against the proposed order. If it finds tax unpaid, short-paid or erroneously refunded, or input tax credit wrongly availed or utilised, it needs a show cause notice, and the order must fall within the time limit of section 73, 74 or 74A.

Section 108 is a different tool. It is the power of the Revisional Authority to examine records on its own motion, on information received, or on request from the State or Union territory Commissioner. It applies where an order of a subordinate officer is erroneous in so far as it is prejudicial to the interest of revenue, and is illegal or improper or has not taken into account certain material facts, or where there is an observation by the Comptroller and Auditor General of India. It is not an appeal by the taxpayer. If necessary, the authority may stay the operation of the order. It must give the person concerned an opportunity of being heard and make such further inquiry as is necessary. It can then pass such order as it thinks just and proper, including enhancing, modifying or annulling the order.

Section 107(16) makes the Appellate Authority's order final, subject to the provisions of sections 108, 113, 117 or 118. Section 108(3) makes a revision order final, subject to the provisions of sections 113, 117 or 118. Sections 109 onwards cover the Appellate Tribunal, and the High Court and Supreme Court come after that. The text supplied to you covers sections 107 and 108 in full, so learn those precisely.

Key rules to remember

Time limit for taxpayer's appeal: 3 months from the date the order is communicated; Section 107(1). The Appellate Authority may allow a further 1 month if sufficient cause is shown (section 107(4)).
Time limit for department's application: 6 months from communication of the order; Section 107(2), on the Commissioner's direction. Condonation of up to 1 month applies here too under section 107(4).
Pre-deposit under section 107(6): Admitted amount in full + 10% of remaining disputed tax, subject to a maximum of ₹20 crore; Admitted tax, interest, fine, fee and penalty must be paid in full. The 10% is on the remaining tax in dispute only. The ₹20 crore cap (earlier ₹25 crore) applies from 1-11-2024.
Pre-deposit for order under section 129(3): 25% of the penalty; Proviso to section 107(6): detention and seizure penalty orders.
Stay of recovery: Pre-deposit paid ⇒ recovery of balance deemed stayed; Section 107(7).
Adjournments: Not more than 3 times to a party; Section 107(9), with reasons recorded in writing.
Disposal period: 1 year from filing, where possible; Section 107(13). Court or Tribunal stay period is excluded.
Revision bar under section 108(2): No revision if: appealed; section 107(2) period not expired; more than 3 years since the order; already revised; or order itself passed under section 108(1); The proviso allows revision on a point not raised and decided in the appeal, before one year from the appeal order or three years from the original order, whichever is later.

How to solve Appeals and Revision under GST questions

Use this sequence for any case-based question on appeals or revision. It keeps your answer in the provision, analysis, conclusion format.

1Identify who is aggrieved and what order was passed, and by which authority (adjudicating authority or a subordinate officer).
2Decide the remedy: taxpayer's appeal under section 107(1), department's application under section 107(2), or revision under section 108.
3Work out the date of communication of the order and count three months (or six for the department). Check if a one-month condonation is possible.
4Compute the pre-deposit: separate the admitted dues from the disputed tax, take 10% of the disputed tax, and apply the ₹20 crore cap. Add 25% of penalty for section 129(3) orders.
5Check the powers and limits of the authority: no remand, show cause for enhancement, time limit of sections 73, 74 or 74A for new tax demands.
6For revision, test each bar in section 108(2) one by one before saying the authority can act.
7State the conclusion clearly, with the next remedy if the facts point to one.

Quickest way: Three-check shortcut for appeal questions

When to use it: Use when a question gives dates and amounts and asks if the appeal is valid or how much to deposit.

Check 1, time: communication date + 3 months (6 for department); add 1 month only if sufficient cause is stated.
Check 2, money: admitted dues in full + 10% of disputed tax, capped at ₹20 crore.
Check 3, authority: ask if it can remand (no) or enhance (only after show cause).
Write the conclusion in one line, then give reasons.

Common mistakes in Appeals and Revision under GST

Calculating the 10% on the whole demand including admitted tax.
Students read '10% of tax in dispute' loosely.
Fix: Subtract the admitted amount first. Pay it in full. Then take 10% of the remaining disputed tax only.
Counting the three months from the date of the order instead of the date of communication.
Income-tax style habits.
Fix: Section 107(1) runs from the date the order is communicated to the person. Always look for the communication date in the facts.
Saying the Appellate Authority can remand the case to the adjudicating authority.
Confusion with other appellate systems.
Fix: Section 107(11) says it shall not refer the case back. It must confirm, modify or annul.
Treating revision under section 108 as an alternative to appeal at the taxpayer's choice.
Both are 'challenging an order'.
Fix: Revision is exercised by the authority, not claimed by the taxpayer. It is barred if the order has already been appealed, subject to the proviso. It is also barred until the section 107(2) period has expired.
Forgetting the condonation limit.
Students assume the authority has wide discretion.
Fix: Only one extra month is allowed, and only for sufficient cause. Beyond that the appeal is time-barred.
Applying the ₹20 crore cap to the whole pre-deposit.
The cap is placed in the clause for the 10% sum.
Fix: The cap limits the 10% sum under clause (b) only. Admitted amounts under clause (a) are paid in full without any cap.

Worked examples

Example 1

Moonlight Traders Pvt. Ltd., Pune, receives an order on 10 March raising a demand of tax ₹50,00,000, of which it admits ₹10,00,000. The order was communicated on 12 March. Compute the pre-deposit for an appeal under section 107 and state the last date for filing, assuming no condonation.

Show the solution

Admitted tax ₹10,00,000 must be paid in full under section 107(6)(a).
Remaining disputed tax = ₹50,00,000 − ₹10,00,000 = ₹40,00,000.
10% of ₹40,00,000 = ₹4,00,000. This is far below the ₹20 crore cap, so the cap does not apply.
Total payment before filing = ₹10,00,000 + ₹4,00,000 = ₹14,00,000. (Any admitted interest, fine, fee or penalty is also paid in full.)
Time limit: three months run from the date of communication, 12 March, not from the order date of 10 March. The day of communication is excluded when counting, so the three months from 12 March end on 12 June. The last date to file is 12 June. In practice, file well before that date.
On payment, recovery of the balance is deemed stayed under section 107(7).

Answer: Pre-deposit is ₹14,00,000 (admitted ₹10,00,000 plus 10% of disputed ₹40,00,000). The three-month period runs from communication on 12 March, and the last date to appeal is 12 June. A delay of up to one month more can be condoned only for sufficient cause.

Example 2

The Appellate Authority hears an appeal by Kaveri Exports Ltd. against a demand order. It finds the adjudicating authority did not examine certain documents. It proposes to send the case back for fresh decision and also to reduce the refund claimed, without any notice. Advise whether this is permissible.

Show the solution

Provision: section 107(11) allows the Appellate Authority to pass such order as it thinks just and proper, confirming, modifying or annulling the order, but it shall not refer the case back to the adjudicating authority.
Analysis of remand: the missing examination of documents does not change this. The authority must itself make such further inquiry as is necessary and then decide.
Analysis of reduction in refund: the first proviso says an order reducing the amount of refund or input tax credit cannot be passed unless the appellant is given a reasonable opportunity of showing cause against the proposed order.
Analysis of hearing: section 107(8) requires that the appellant be given an opportunity of being heard.
Conclusion: remand is not permissible, and reducing the refund without notice is not permissible.

Answer: The Appellate Authority cannot remand the case. It must inquire further and decide. It may reduce the refund only after giving Kaveri Exports Ltd. a show cause notice and a reasonable opportunity to respond.

Exam tips

Write the section number with each rule, but only for sections 107 and 108, where you are sure. Elective papers are open book, so keep your notes tabbed by sub-section.
In case questions, always work out the dates and the pre-deposit in numbers. Show the admitted amount and the 10% separately.
For section 108, list each bar in section 108(2) and tick it off against the facts. Examiners reward the checklist.
End every answer with a clear conclusion in one sentence, then mention the next remedy only if the question asks.
Learn the difference between the Commissioner's application under section 107(2) and revision under section 108. Questions often mix the two.

Practice questions from Assessment, Audit, Scrutiny, Demand and Recovery, Advance Ruling, Appeals and Revision

Appeals and Revision under GST in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Appeals and Revision under GST: frequently asked questions

What is the time limit to file a GST appeal?

A taxpayer must appeal within three months from the date the order is communicated. If sufficient cause prevented filing, the Appellate Authority may allow it within a further one month. Nothing beyond that is allowed.

How much pre-deposit is needed under section 107?

You pay the admitted amount of tax, interest, fine, fee and penalty in full. You also pay 10% of the remaining disputed tax, subject to a maximum of ₹20 crore. For a section 129(3) order, the pre-deposit is 25% of the penalty.

Can the Appellate Authority send the case back to the officer?

No. Section 107(11) says it can confirm, modify or annul the order but shall not refer the case back to the adjudicating authority that passed it.

When can the Revisional Authority not act under section 108?

It cannot act if the order has been appealed, if the section 107(2) period has not expired, if more than three years have passed since the order, if the order was already taken up for revision, or if it was itself a revision order. A proviso allows revision of a point not raised and decided in the appeal, within the stated time.

Does paying the pre-deposit stop recovery?

Yes. Under section 107(7), once you pay the amount required under section 107(6), recovery proceedings for the balance amount are deemed to be stayed.