GST Demand Notice? Your Appeal Has a 10% Cost

If you get a GST demand notice and want to fight it, you must deposit 10% of the disputed tax upfront before the appeal is even heard. Missing deadlines can cost you your right to appeal — but courts can forgive delays in genuine cases like a CA's illness.

Here's what happened: Telangana High Court allowed a taxpayer to file a delayed GST appeal after their Chartered Accountant fell seriously ill, causing the missed deadline.. Under GST law, any taxpayer contesting a tax demand must pay a mandatory 10% pre-deposit of the disputed amount before an appeal can proceed.. Courts can condone (forgive) appeal delays if you file a formal delay condonation application showing a genuine, unavoidable reason for the delay..

What you should do: Check every GST demand notice for its appeal deadline — you typically have 3 months from the date of the order to file an appeal.. If your CA or tax advisor is unavailable due to illness or emergency, immediately file a delay condonation application citing the specific reason with evidence.. Set aside at least 10% of any disputed GST amount in a liquid savings account so you can make the mandatory pre-deposit without a cash crunch..

Pro tip: Even if you miss the GST appeal deadline, you are NOT automatically disqualified — courts routinely condone delays for genuine reasons like advisor illness, hospitalisation, or natural disasters. File anyway with supporting documents.