GST
Pre-deposit needed to appeal a GST demand
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Facts
Under Sec 107(6), you pay in full the amount you admit, plus 10 percent of the remaining tax in dispute. The 10 percent is capped at ₹20 crore under the CGST Act, reduced from ₹25 crore by the Finance (No. 2) Act 2024. Interest and penalty are not part of the 10 percent base when tax is disputed.
Provisions and law
- Sec 107(6), CGST Act 2017Pre-deposit of admitted dues plus 10 percent of disputed tax, capped at ₹20 crore
- Sec 107(7), CGST Act 2017Recovery of the balance is stayed once the pre-deposit is paid
Analysis
If the order confirms tax of ₹10,00,000, interest and penalty, and you dispute all of it, the pre-deposit is ₹1,00,000 of tax, split across heads as per the order. Once paid, recovery of the rest is stayed under Sec 107(7). If you admit ₹2,00,000 of the tax, pay that in full plus 10 percent of the disputed ₹8,00,000.
Conclusion
- Split the order into admitted and disputed amounts
- Compute 10 percent of disputed tax by head
- Pay admitted dues and pre-deposit while filing APL-01
- Keep the debit entries as proof
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