GST
Pre-deposit for a penalty-only GST order
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Facts
From 1 October 2025, under the Finance Act 2025 amendment brought in by Notification 16/2025-CT, an appeal against an order demanding only a penalty, without tax, needs a pre-deposit of 10 percent of the penalty.
Provisions and law
- Sec 107(6), CGST Act 2017Pre-deposit of admitted dues plus 10 percent of disputed tax, capped at ₹20 crore
- Notification 16/2025-CTBrought into force the 10 percent pre-deposit for penalty-only appeals from 1 October 2025
Analysis
Earlier, a 25 percent pre-deposit applied to penalty orders in detention cases under Sec 129. Now 10 percent applies across penalty-only orders. For a penalty of ₹5,00,000, the pre-deposit is ₹50,000. Check the order to confirm no tax is demanded alongside.
Conclusion
- Confirm the order demands only penalty
- Compute 10 percent of the penalty
- Pay through the portal when filing APL-01
- Keep the order and payment details together
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