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CA Final · Indirect Tax Laws · Appeals and Revision (GST)

Before the GST Appellate Tribunal, an appeal against an order covering two tax periods involves tax of Rs 30 lakh for one period and Rs 28 lakh of input tax credit for the other, and a penalty of Rs 2 lakh. The President proposes to assign it to a single Member Bench, treating each period separately as below Rs 50 lakh. Which view follows from the CGST Rules?

The Rs 50 lakh threshold is tested on the cumulative tax, input tax credit, fine, fee or penalty across all issues and all tax periods in the order appealed against. Here the total is Rs 60 lakh, so splitting by period or counting only tax is wrong.

  1. AEach tax period is taken separately, so each is below Rs 50 lakh
  2. BOnly the tax amount is counted, so Rs 30 lakh is below Rs 50 lakh
  3. CThe amounts are cumulated across all issues and periods in the order, giving Rs 60 lakh, so the Rs 50 lakh test is applied on that totalCorrect
  4. DPenalty alone is tested against Rs 50 lakh, so Rs 2 lakh qualifies

Explanation

The rules say the cumulative tax or input tax credit involved, or the amount of fine, fee or penalty, is determined with reference to all issues and all tax periods covered in the order appealed against. Here 30 + 28 + 2 = Rs 60 lakh. Separating periods is the mistake in the first option.

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