Understanding Appeal Withdrawal under GST
Understanding Appeal Withdrawal under GST With the introduction of the Waiver Scheme under Section 128A of the CGST Act, there has been a significant response from taxpayers aiming to settle pending disputes efficiently. Understanding Appeal Withdrawal under GST One key pre-condition for availing benefits under this scheme is that no appeal should be pending before the Appellate Authority against the relevant demand order.
In this blog, we dive into the technical process of Appeal Withdrawal under the GST portal and how it plays a crucial role in qualifying for the waiver scheme.
What is an Appeal Withdrawal?
In the GST regime, a registered person aggrieved by a decision or order passed by a lower authority may file an appeal using Form APL-01 on the GST portal. Understanding Appeal Withdrawal under GST However, in certain circumstances—such as opting for a settlement scheme or realizing procedural errors—taxpayers may choose to withdraw the appeal.
Understanding Appeal Withdrawal under GST To withdraw an appeal, the applicant is required to file Form APL-01W, which triggers the withdrawal process. The procedure and its consequences vary depending on the stage of appeal processing.
Two Scenarios for Withdrawal and Their Treatment
Withdrawal Before Issuance of Final Acknowledgment (APL-02)
When a taxpayer files a withdrawal request before the Appellate Authority has issued the final acknowledgment in Form APL-02, the GST system treats the process as self-executed. This means:
- The system automatically accepts the withdrawal.
- The status of the appeal changes from “Appeal Submitted” to “Appeal Withdrawn”.
- No further approval or action is needed from the Appellate Authority.
This automated process enables a swift closure of appeals and benefits taxpayers looking to quickly opt into schemes like the one under Section 128A.
Withdrawal After Issuance of Final Acknowledgment (APL-02)
In cases where the Final Acknowledgment has already been issued by the Appellate Authority, the process becomes a manual approval-based one:
- The withdrawal request submitted through Form APL-01W is forwarded to the Appellate Authority.
- The Authority must review and approve the withdrawal.
- Once approved, the system updates the status to “Appeal Withdrawn”.
Although this method involves an additional step, it is essential for maintaining procedural integrity where the appeal has already been formally acknowledged by the authority.
Link Between Appeal Withdrawal and the Waiver Scheme (Section 128A)
The Waiver Scheme under Section 128A was introduced to allow taxpayers to settle outstanding dues while receiving relief in terms of interest, penalties, or late fees, depending on eligibility. However, one of the core eligibility conditions is:
“There must not be any pending appeal against the demand order.”
Understanding Appeal Withdrawal under GST Therefore, withdrawal of any filed appeal becomes a mandatory step for taxpayers seeking benefits under this scheme. Whether withdrawn before or after acknowledgment, once the status of the appeal changes to “Appeal Withdrawn,” the requirement is considered fulfilled.
What You Need to Do
To successfully claim benefits under the waiver scheme:
- Check the Status of any appeal filed in relation to the demand order.
- File APL-01W to initiate withdrawal, if applicable.
- Download or Screenshot the appeal case folder from the GST portal clearly showing the status as “Appeal Withdrawn.”
- Upload the Screenshot along with your waiver application (or through the modification option if already filed).
Final Thoughts
The GSTN has simplified many compliance processes, and the clarity around appeal withdrawals is a positive step for taxpayer convenience. Understanding Appeal Withdrawal under GST As the Waiver Scheme under Section 128A is time-bound and requires strict adherence to conditions, understanding and correctly executing appeal withdrawal is essential.
Ensure that all required documentation, especially proof of withdrawal, is submitted timely to avoid delays or rejection of your waiver application.
Need Help?
Contact to https://taxgyany.com/
Source Link- https://services.gst.gov.in/services/advisoryandreleases/read/602