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

Under the IGST Act proviso on appeals, a maximum amount of forty crore rupees is payable for each appeal filed before the Appellate Authority or Appellate Tribunal. A registered person's pre-deposit for an appeal would be calculated at ₹55 crore on a straight percentage basis, and the CGST and SGST pre-deposit caps are separate. What does the IGST proviso imply for the integrated tax portion?

The integrated tax amount payable for that appeal is capped at ₹40 crore. The IGST Act proviso sets a maximum of forty crore rupees for each appeal before the Appellate Authority or Appellate Tribunal, so the ₹55 crore computed figure is reduced to that cap.

  1. AThe integrated tax amount payable for that appeal is capped at ₹40 croreCorrect
  2. BThe integrated tax amount payable for that appeal is ₹55 crore, as the cap applies only to CGST
  3. CThe cap of ₹40 crore applies to the total of all appeals filed by the person in a year
  4. DThe cap of ₹40 crore applies per order of the appellate authority, not per appeal

Explanation

The IGST proviso, as substituted in 2024, says a maximum of forty crore rupees is payable for each appeal before the Appellate Authority or Appellate Tribunal. The cap works per appeal, not as an annual aggregate. So the ₹55 crore calculation is restricted to ₹40 crore for the integrated tax part.

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