Ahmedabad: Despite an extension of the deadline to file appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) from March 31 to June 30, appeal filings across the country remain far below expectations. Tax experts cite the burden of additional deposits and persistent technical issues on the filing portal as key reasons for the slow response.
About 8,400 appeals have been filed nationwide so far, including nearly 1,000 from Gujarat, even though professionals had expected four lakh appeals after the long-awaited tribunal became operational nearly eight years after the rollout of the GST regime.
Additional Deposit Requirement Deters Taxpayers
Chartered accountant Rahul Patel said the requirement of an additional deposit has discouraged many taxpayers from approaching the tribunal.
“A major reason for fewer appeals is the additional 10% pre-deposit of the disputed tax demand required while filing an appeal before the tribunal. Taxpayers going approaching the tribunal had already deposited 10% at the first appellate stage, so this becomes a significant burden,” said Patel.
He said the provision differs from the earlier excise and service tax regime, where the total pre-deposit was capped at 10%. “That difference is being felt sharply by taxpayers,” Patel said. “The portal is functioning more smoothly now, and filings are likely to pick up in the coming months. However, still it is not clear when the physical hearings will start,” he added.
Technical and Procedural Hurdles on GSTAT Portal
However, industry representatives said the financial burden is not the sole factor behind the low number of appeals, pointing to technical and procedural hurdles on the GSTAT portal.
Nayan Sheth, chairman of the indirect tax committee of the Gujarat Chamber of Commerce and Industry, said glitches on the portal continue to hamper the filing process.
“There are still several issues on the portal, and that is one of the reasons appeal filings remain low,” Sheth said. “Although tax advocates file appeals for appellants, dealer registration is also necessary. For that process, an OTP sent to the dealer is required, and only after that can the appeal be submitted.”
He said delays in OTP authentication and coordination problems between the GST portal and the separate tribunal website have created further complications for taxpayers and practitioners.
“There are synchronisation issues between the GST portal and the GSTAT platform,” Sheth said. “These procedural and technical obstacles are preventing many eligible appeals from being filed on time.”
Sheth added that many taxpayers had already deposited the additional 10% of the disputed tax demand after the government issued a circular assuring that taxpayers making the payment for second appeals would not face recovery proceedings until the tribunal became functional.
Outlook for Future Filings
Despite the current low numbers, experts believe that filings may increase as the portal improves and awareness grows. However, the combination of financial and technical challenges continues to be a significant barrier for many taxpayers seeking to appeal before the GSTAT.
