GST Circular No 207/2024
The Indian Ministry of Finance’s Department of Revenue issued a circular on June 26, 2024, regarding the reduction of government litigation by setting monetary limits for filing appeals by the Central Tax officers before GST Appellate Tribunal (GSTAT), High Courts, and the Supreme Court. This circular is part of the National Litigation Policy, which aims to optimize judicial resource utilization and expedite pending cases. The policy emphasizes the importance of prudent litigation practices by establishing monetary thresholds for filing appeals in revenue matters.
The monetary limits for appeals are set as follows: ₹20,00,000 for GSTAT, ₹1,00,00,000 for High Courts, and ₹2,00,00,000 for the Supreme Court. When determining if a case falls within these limits, only the disputed amount of tax, interest, penalty, or late fee should be considered. For composite orders that dispose of
multiple appeals or demand notices, the monetary limits apply to the total amount involved. These limits are designed to avoid unnecessary litigation and provide certainty to taxpayers regarding their tax assessments.
Exclusions to these monetary limits include cases involving significant legal questions, such as the constitutionality of GST provisions, valuation of goods or services, classification issues, and recurring legal interpretations. Additionally, if a court’s decision imposes strictures, adverse comments, or costs against the government, appeals may still be filed regardless of the monetary limits. The circular also states that non-filing of appeals based on these limits does not set a precedent, and tax officers can still file appeals in other cases with similar issues if the disputed amount exceeds the monetary limit.
