Now Reading: Delhi High Court Rejects Retrospective 10% GST Appeal Deposit
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Delhi High Court Rejects Retrospective 10% GST Appeal Deposit
The Delhi High Court has ruled that a 10% pre-deposit requirement for appeals against penalty-only GST orders cannot apply to proceedings that began before October 1, 2025. The requirement was introduced through…
The Story in Brief
The Delhi High Court has ruled that a 10% pre-deposit requirement for appeals against penalty-only GST orders cannot apply to proceedings that began before October 1, 2025. The requirement was introduced through an amendment to Section 107(6) of the CGST Act. The court held that the right to appeal, including its conditions, takes shape when adjudication proceedings begin. The case involved two taxpayers who received show cause notices in June 2025 and later faced penalties exceeding Rs 346 crore each.
The court directed the appellate authority to hear their appeals without demanding the 10% deposit. It said the taxpayers must still meet any admitted liability. The ruling is expected to aid penalty proceedings initiated before October 1, 2025, except those under Section 129, according to ETCFO.
The Indian Opinion
Claims that the judgment wipes out GST penalties, or gives taxpayers a free pass, go too far. The court addressed timing and access to appeal, not whether the alleged liabilities were valid. The opposite claim, that every old case will automatically qualify, is also too broad, since Section 129 proceedings are excluded and the ruling turns on when the dispute began. The practical test is whether appellate authorities apply the ruling consistently to pre-October 1, 2025 proceedings.
Source: cfo.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
