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Section 107 GST First Appeal and Commissioner Appeals Service in 2026

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Documents: DRC-07 order (or other appealable order), original SCN, DRC-06 reply, hearing minutes, GSTR-1/3B/9/2B, books of account, reconciliation working file, statement of facts, and grounds of appeal.

Fees: Starting from INR 19,999 (Exl GST and Govt. Charges) - per appeal engagement covering pre-deposit advisory, APL-01 filing, drafting, and hearing representation.

Eligibility: Every aggrieved registered taxpayer against any adjudicating authority order - DRC-07 demand under Section 73/74/74A, refund rejection, registration cancellation, and Section 62/63/76/129/130 orders.

Timeline: APL-01 filing within 3 months of order communication (extendable 1 month); APL-02 acknowledgement within 7 days; 1-year aspirational disposal under Section 107(13).

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Section 107 GST First Appeal at a Glance

📌 TL;DR - Section 107 GST Appeal Services at a Glance

Section 107 of the CGST Act 2017 governs the first appellate stage - aggrieved taxpayers can appeal against any adjudicating authority order before the Commissioner (Appeals) or Joint Commissioner (Appeals) within 3 months of order communication, extendable by 1 month for sufficient cause. The authority cannot condone delays beyond 4 months - the only remedy then is a writ under Article 226. The appeal is filed in Form GST APL-01 with a mandatory 10 percent pre-deposit of disputed tax under Section 107(6), capped at Rs 20 crore per CGST and Rs 20 crore SGST. From April 2026 the pre-deposit field is editable where DRC-03 payments already exist. Filing is followed by APL-02 acknowledgement within 7 days, hearing with a maximum 3 adjournments, and a final order in APL-04 within the 1-year aspirational period under Section 107(13). Recovery is automatically stayed on filing plus pre-deposit. This is the LAST stage where a Section 75(2) downgrade from Section 74 to Section 73 can be argued without GSTAT remand. The onward route is a GSTAT appeal under Section 112 with an additional 10 percent pre-deposit. Patron engagement starts at INR 19,999.

Section 107 of the CGST Act 2017 is the foundational litigation stage in the GST adjudication framework - the first formal challenge against an adverse order from the proper officer. The order most commonly appealed is DRC-07 (the summary of adjudication under a Section 73 or 74 demand), but Section 107 also covers refund rejection orders, registration cancellation orders, Section 62 and 63 assessments, Section 76 unauthorised collection orders, Section 129 transit orders, Section 130 confiscation orders, and Sections 122 to 127 penalty orders.

The 3-month time limit from order communication is rigid - condonable by 1 additional month at appellate authority discretion, but beyond 4 months the statutory authority has no power to admit the appeal regardless of reason (only Article 226 writ remains). The 10 percent pre-deposit under Section 107(6) gates admission. With 10,000+ businesses served, 350 plus Section 107 appeals filed, Rs 400 crore plus in demand disputed, and a 78 percent favourable outcome rate, Patron Accounting LLP runs this engagement at INR 19,999 onwards - covering pre-deposit advisory, APL-01 filing, grounds drafting with Section 75(2) downgrade arguments, hearing representation under Section 116, and the onward GSTAT route under Section 112.

Content is reviewed quarterly for accuracy.

What Is a Section 107 GST Appeal?

A Section 107 GST appeal is the first formal challenge by an aggrieved taxpayer (or the department under Section 108 revisional authority) against any order passed by an adjudicating authority under the CGST Act 2017 - filed before the appellate authority at the level of Commissioner (Appeals) for state matters or Joint Commissioner (Appeals) for central matters. The appeal is filed electronically in Form GST APL-01 on the GST portal within 3 months from the date of communication of the order being appealed against.

The appellate authority has discretion to condone an additional 1 month delay for sufficient cause shown, but cannot condone delays beyond 4 months - the only remedy after that is a writ petition under Article 226 of the Constitution before the jurisdictional High Court. The appeal admission is subject to mandatory pre-deposit of 10 percent of disputed tax under Section 107(6), subject to a maximum cap of Rs 20 crore per CGST and Rs 20 crore SGST, plus 100 percent of the admitted portion of demand.

Once admitted via final acknowledgement in Form APL-02, the appellate authority schedules personal hearings (maximum 3 adjournments under Section 107(8)) and disposes the appeal within the 1-year aspirational timeline of Section 107(13). The final order is issued in Form APL-04 - the authority can confirm, modify, annul, or remand. On filing plus pre-deposit, recovery of the disputed balance is automatically stayed. The onward route from an adverse APL-04 is the GSTAT under Section 112 with an additional 10 percent pre-deposit.

Key Terms for Section 107 GST Appeal:

Section 107 CGST Act: Governs the first appellate stage - an aggrieved taxpayer files before the Commissioner (Appeals) or Joint Commissioner (Appeals) within 3 months of order communication.
First Appellate Authority (FAA): The officer hearing Section 107 appeals - Commissioner (Appeals) for state GST or Joint Commissioner (Appeals) for central GST. Distinct from the GSTAT, which is the second appellate tribunal under Section 112.
Form APL-01: The electronic appeal filing form - statement of facts, grounds of appeal, disputed amounts, pre-deposit details, and supporting documents, filed via DSC or EVC.
Form APL-02: The final acknowledgement confirming admission of the appeal - triggers the 1-year aspirational disposal clock under Section 107(13).
Form APL-03: The departmental appeal by the Commissioner under Section 107(2), filed within 6 months of the original order.
Form APL-04: The final order under Section 107(11) - confirmed, modified, annulled, or remanded - which triggers the 3-month window for an onward GSTAT appeal.
Form APL-01W / APL-03W: Withdrawal forms introduced via CGST Circular 250/07/2025-GST dated 24 June 2025; after APL-02, withdrawal requires appellate authority approval.
10% Pre-Deposit (Section 107(6)): Mandatory pre-condition for admission - 10 percent of disputed tax, capped at Rs 20 crore per CGST and Rs 20 crore SGST. Editable in APL-01 from April 2026 where DRC-03 payments already exist.
Admitted Portion: 100 percent of any demand portion the taxpayer does not contest must be paid before filing - separate from the 10 percent pre-deposit on the disputed portion.
Electronic Cash Ledger: The preferred method for paying pre-deposit per the Jyoti Construction case, avoiding technical rejection that can arise with Credit Ledger usage.
Section 107(8) Adjournments: Maximum 3 adjournments per party per appeal.
Section 107(11) Powers of FAA: Confirm, modify, annul, or remand. The FAA can directly downgrade Section 74 to Section 73 without remand.
Section 107(13) Disposal Timeline: 1-year aspirational disposal period from the date of filing - a guideline, not a strict deadline.
Recovery Stay on Filing: Automatic stay of recovery on the disputed amount upon filing plus pre-deposit; flagged non-recoverable on the portal until disposal.
Section 75(2) Downgrade Defence: If Section 74 fraud cannot be established, the demand is treated as raised under Section 73 with a 10 percent penalty cap. Section 107 is the LAST stage where this downgrade applies WITHOUT remand.
GSTAT (Section 112): The second appellate tribunal - hears appeals against APL-04 with an additional 10 percent pre-deposit (total 20 percent across stages).
Article 226 Writ Remedy: The constitutional remedy before the High Court for appeals filed beyond 4 months, where the statutory authority cannot condone.
Section 128A Amnesty: Conditional waiver of interest and penalty for Section 73 demands for FY 2017-18 to FY 2019-20, subject to conditions.

Time Limit 3 Months + 1 Condonable

Orders Appealable Under Section 107

Section 107 covers any order passed by an adjudicating authority under the CGST Act - a wide net spanning demand, assessment, refund, registration, transit and confiscation, and penalty orders.

Demand Orders (Most Common)

DRC-07 demand orders under Section 73 (non-fraud cases - 10% penalty cap)
DRC-07 demand orders under Section 74 (fraud cases - 100% penalty) with Section 75(2) downgrade arguments
DRC-07 demand orders under Section 74A (FY 2024-25 onwards unified framework)
Section 76 orders - tax collected from customers but not deposited to government

Assessment Orders

Section 62 best judgment assessment for non-filers
Section 63 assessment of unregistered persons
Section 64 summary assessment in special cases

Refund and Registration Orders

Refund rejection orders (RFD-06) - full or partial rejection
Section 54 refund deficiency memos beyond rectification; inverted duty and export refund rejections
Registration cancellation orders under Section 29(2); revocation rejection; refusal of registration under Section 25

Transit, Confiscation, and Penalty Orders

Section 129 orders for goods in transit; Section 130 confiscation orders; MOV-09 confiscation orders
Section 122, 125, and 127 penalty orders; late fees under Section 47 in appealable contexts

Other Appealable Orders

Section 67 search and seizure related orders; Section 79 recovery related orders
ADT-02 audit findings adverse orders; TRAN-1 and TRAN-2 transitional credit rejection orders

Patron Accounting Services for Section 107 GST Appeal

Service	What We Do
DRC-07 Order Analysis and Appeal Strategy Memo	Within 24 hours of DRC-07 receipt - order analysis cross-referenced to the SCN and DRC-06 reply, identifying confirmed, dropped, and modified items. Strategic memo on appeal advisability, Section 75(2) downgrade probability, pre-deposit cash flow, and timeline tracking.
Pre-Deposit Advisory and Computation	Pre-deposit computation under Section 107(6) with the Rs 20 crore cap analysis, Electronic Cash Ledger vs Credit Ledger advisory (Jyoti Construction), DRC-03 integration via the April 2026 editable field, and admitted-portion bifurcation.
APL-01 Filing with Premium Grounds Drafting	Premium grounds drafting emphasising the Section 75(2) downgrade (for Section 74 demands - the LAST stage to argue without remand), factual matrix challenges, statutory analysis, CBIC circular references, and Supreme Court / High Court / GSTAT case law, with APL-01 e-filing.
Hearing Representation Under Section 116	Personal hearing attendance by an authorised CA / CS - typically 3 to 5 hearings. Hearing briefs, grounds revision, supplementary submissions, additional evidence under Rule 112, and adjournment management within the Section 107(8) cap.
APL-04 Order Analysis and Onward Strategy	The final order analysed against grounds raised - relief quantified, items dropped vs upheld. A strategic memo on the onward path: accept relief, file a GSTAT appeal under Section 112, seek DRC-08 rectification, or pursue Section 161 review.
APL-01W Withdrawal Advisory for Section 128A	For Section 73 demands for FY 2017-18 to FY 2019-20 qualifying under Section 128A - withdrawal via APL-01W (Circular 250/07/2025-GST), the Section 128A waiver application under Rule 164, and recovery of interest and penalty amnesty.

Our Process

How the Section 107 Appeal Works - Step by Step

From Day-1 order analysis to the onward GSTAT route, here is exactly how Patron Accounting runs an end-to-end Section 107 first appeal.

Step 1

Day-1 Order Receipt and Appeal Decision

On DRC-07 or other order receipt - immediate analysis of confirmed vs dropped items, quantum bifurcation (tax + interest + penalty), and the 3-month clock starts. Decision framework: appeal advisability based on quantum, Section 75(2) downgrade probability, and pre-deposit cash flow.

Within 24 hrs Clock tracked

Order Receipt 01

Step 2

Pre-Deposit Computation and Funding Plan

10 percent of disputed tax under Section 107(6) computed with the Rs 20 crore cap. Admitted portion identified - 100 percent must be paid. Total cash outflow planning via Electronic Cash Ledger plus admitted portion via DRC-03.

10% computed Cap applied

Pre-Deposit 02

Step 3

Grounds of Appeal Drafting

Statement of facts setting out the chronology, then issue-wise grounds: Section 75(2) downgrade for Section 74 cases, factual matrix challenges, statutory analysis, CBIC circulars, and Supreme Court / High Court case law. Prayer for relief specified.

75(2) primary Case law

Grounds 03

Step 4

APL-01 Electronic Filing on Portal

Filing at gst.gov.in. Order details entered, disputed amounts bifurcated, the pre-deposit field filled (editable from April 2026), supporting documents uploaded, and DSC or EVC submission. Provisional acknowledgement received.

Docs uploaded DSC / EVC

APL-01 Filed 04

Step 5

Certified Copy Submission Within 7 Days

A hard copy of the order being appealed (with certified copy if not digitally signed) submitted to the appellate authority office within 7 days of e-filing. APL-02 final acknowledgement confirms admission.

7-day rule APL-02

Certified Copy 05

Step 6

Hearing Notice and Personal Hearing

The appellate authority schedules hearings - typically 3 to 5 over 6 to 18 months. Each attended by an authorised CA / CS under Section 116, with grounds-wise oral argument and additional evidence under Rule 112 where permissible.

Section 116 Max 3 adj.

Hearing 06

Step 7

Written Submissions and Supplementary Pleadings

Between hearings - detailed written submissions elaborating on points raised orally, supplementary case-law citations, and fresh evidence with explanation under Rule 112. The departmental side responds; cross-submissions form the written record.

Written record Rule 112

Submissions 07

Step 8

APL-04 Final Order and Analysis

The final order in Form APL-04 (aspirational within 1 year under Section 107(13)) is analysed - relief obtained quantified, items dropped vs upheld. Was the Section 75(2) downgrade granted? Penalty reduced? Quantum modified?

Relief quantified 75(2) check

APL-04 Order 08

Step 9

Recovery Stay Update and Pre-Deposit Status

If relief reduces or eliminates the demand - excess pre-deposit is refundable. If confirmed or partial relief only - recovery on the confirmed balance resumes; the stay continues only for the portion onward-appealed at GSTAT.

Stay updated Refund check

Recovery 09

Step 10

Onward Route Decision (GSTAT or Alternatives)

Three onward paths - a GSTAT appeal under Section 112 within 3 months with an additional 10 percent pre-deposit (APL-05), DRC-08 rectification under Section 161 for apparent errors, or a High Court writ under Article 226. APL-01W withdrawal also possible for Section 128A.

Section 112 Or rectify

Onward Route 10

Documents and Data Checklist

Have these inputs ready to build a strong Section 107 appeal:

DRC-07 order (or other appealable order) with the detailed adjudication order
Original DRC-01 SCN under Section 73 or 74 (and DRC-01A if applicable)
DRC-06 reply filed at SCN stage with all annexures
Personal hearing minutes and supplementary submissions filed at SCN stage
GSTR-1, GSTR-3B, GSTR-9, and GSTR-9C for the disputed period
GSTR-2A and GSTR-2B monthly downloads
Books of account - trial balance, ledger extracts, journal vouchers, audit reports
Reconciliation working file used for the SCN reply (updated for new evidence)
Bank statements showing tax payments and admitted-portion DRC-03 (if any)
Supplier compliance evidence (GSTR-1 filing status of challenged vendors)
Pre-deposit funding arrangement (cheque or RTGS for Electronic Cash Ledger)
DSC or EVC credentials for APL-01 e-filing
Authorisation letter under Section 116 for the CA / CS to appear
Any related-party transaction documentation and industry-specific evidence

Common Challenges and Patron Solutions

Challenge	Impact	How Patron Accounting Solves It
3-Month Limitation Strictness and Hard 4-Month Cap	The 3-month limit is rigid; condonable by only 1 more month, with an absolute 4-month cap - not even for medical emergencies. Many taxpayers miss it due to confusion over the communication date or an assumption that delays can always be condoned. Beyond 4 months, only an Article 226 writ remains.	Day-1 engagement intake with a 3-month countdown auto-tracked from the communication date. Strategy finalised by Day-30 to allow Day-75 filing with a Day-90 buffer. Where genuine cause exists, a condonation application within the 4-month window; beyond that, Article 226 writ specialist coordination.
Pre-Deposit Cash Flow Strain for High-Value Demands	The 10 percent pre-deposit is significant - Rs 10 lakh on a Rs 1 crore demand at this stage, plus another 10 percent at GSTAT. Many businesses lack the working capital flexibility, especially when the admitted portion must also be paid in full.	Pre-deposit funding strategy with Electronic Cash Ledger advisory (Jyoti Construction), DRC-03 integration via the April 2026 editable field, banking coordination, and stay applications before the High Court for genuine hardship. The Rs 20 crore cap is exploited for very high-value matters.
Section 75(2) Downgrade Must Be Argued at Section 107 Stage	The GSTAT Delhi Bench 2026 ruling confirmed GSTAT cannot itself convert a Section 74 demand to Section 73 - it must remand to the Proper Officer. So Section 107 is the LAST stage where the downgrade is direct. Under-arguing it here means a GSTAT remand adding 2-3 years.	Section 75(2) is prioritised as the PRIMARY ground in APL-01 for all Section 74 demands - Supreme Court Northern Operating System (2022) citation, burden-of-proof framework, and statutory ingredient test failure analysis. A successful downgrade here saves 90 percent of penalty exposure.
APL-04 Order Without Detailed Reasoning	Many APL-04 orders are issued with insufficient detail, particularly on grounds rejected without explanation - a weak basis for an onward GSTAT appeal which requires identifying substantial errors of law or fact.	APL-04 analysis with specific identification of unreasoned dismissals, a DRC-08 rectification application under Section 161 for omissions, and where denied, GSTAT grounds highlighting the absence of reasoned consideration, relying on natural-justice jurisprudence.

Section 107 GST Appeal Service Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 19,999 (Exl GST and Govt. Charges) - per appeal engagement; foundational litigation
Standard Section 107 Appeal (below Rs 25 lakh demand)	INR 19,999 - DRC-07 analysis, APL-01 filing, 1-2 hearings
Medium Section 107 Appeal (Rs 25 lakh to Rs 1 crore)	INR 49,999 - Section 75(2) defence, premium grounds, 3-4 hearings
High-Value Section 107 Appeal (Rs 1 crore to Rs 5 crore)	INR 99,999 - complex multi-issue grounds, 5+ hearings, senior partner involvement
Very High-Value Section 107 Appeal (above Rs 5 crore)	INR 1,99,999+ - senior counsel briefing, parallel writ readiness, premium representation
Refund Rejection Appeal	INR 24,999 - RFD-06 challenge, refund framework analysis, hearing
Registration Cancellation Appeal	INR 19,999 - Section 29(2) cancellation challenge, revocation route
APL-01W Withdrawal Advisory (Section 128A)	INR 14,999 - Section 128A amnesty integration, Rule 164 application
Article 226 Writ (Beyond 4 Months)	INR 1,99,999+ - High Court writ for limitation condonation, with counsel
Pre-Deposit, Interest, and Onward GSTAT Pre-Deposit	Billed separately at actuals - 10% pre-deposit (Rs 20 crore cap), admitted portion, Section 50 interest, GSTAT additional 10%

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Section 107 GST Appeal consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Time Taken for Section 107 Appeal Activities

Stage	Estimated Timeline
Day-1 DRC-07 order analysis and appeal decision	1-2 days (Day 1 of 3-month window)
Pre-deposit computation and funding plan	2-3 days (Day 2 to Day 7)
Grounds of appeal drafting (Section 75(2) emphasis)	7-15 days (Day 7 to Day 25)
APL-01 e-filing on GST portal	1 day (Day 25 to Day 60 typically)
Certified copy submission to appellate authority	Within 7 days of e-filing
APL-02 final acknowledgement receipt	7-15 days after filing
First personal hearing scheduling	3-6 months after filing
Total hearings (typically 3-5)	6-15 months (max 3 adjournments per Section 107(8))
APL-04 final order issuance	12-24 months (aspirational 1 year under Section 107(13))
GSTAT appeal under Section 112 (onward)	Within 3 months of APL-04

Standard timeline: DRC-07 to APL-04 is typically 15-30 months at the Section 107 stage. A GSTAT appeal adds 18-36 months. Total demand-to-final-resolution is often 3-5 years in litigated matters - faster if a Section 75(2) downgrade or favourable APL-04 lands at the Section 107 stage.

Key Benefits

Benefits of Professional Section 107 Appeal Service

Day-1 Response Capability

Captures the 3-month statutory window every time, with a countdown auto-tracked from the communication date.

Rs 20 Crore Cap Exploitation

Pre-deposit computation that applies the Rs 20 crore cap per CGST/SGST for high-value matters.

Section 75(2) Downgrade Defence

Argued at the LAST stage where it is directly available - saving up to 90 percent of penalty exposure.

Electronic Cash Ledger Strategy

Pre-deposit via the Cash Ledger per the Jyoti Construction case to avoid technical rejection.

April 2026 Editable Field

Integration of prior DRC-03 voluntary payments through the editable pre-deposit field.

Premium Grounds Drafting

Grounds built on Supreme Court and High Court case-law citations, not boilerplate.

Section 116 Representation

Authorised representation by senior CA / CS at every hearing.

78% Favourable Outcome Rate

Full or partial relief across 350+ Section 107 appeals, with Rs 400 crore plus disputed.

Onward GSTAT Readiness

GSTAT route preparation pre-emptive from the APL-01 stage for a seamless second appeal.

Writ Coordination

Article 226 writ specialist coordination where the statutory limit is exceeded.

Trust Signals and Outcome Proof

10,000+ Businesses Served | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years of Practice

Trusted by Hyundai, Asian Paints, Bridgestone, and 10,000+ Indian enterprises - listed companies, mid-market corporates, SMEs, manufacturers, traders, e-commerce sellers, exporters, restaurants, real estate developers, and service providers facing Section 107 appeals against DRC-07 demand orders, refund rejections, and registration cancellations.

Patron has filed 350 plus Section 107 appeals across the active client base with Rs 400 crore plus in demand exposure disputed - a 78 percent favourable outcome rate at APL-04 stage (full or partial relief), with successful Section 75(2) invocation in 200+ Section 74 appeals, the Rs 20 crore cap exploited across high-value matters, zero missed 3-month windows, and an average APL-04 timeline of 18-24 months.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves businesses across India - both in-person and remotely. See our GST appeal support in Pune for local assistance.

Section 107 vs GSTAT (Section 112) - Two Appeal Stages

Parameter	Section 107 (First Appeal)	Section 112 GSTAT (Second Appeal)
Stage	First appellate authority	Second appellate tribunal
Forum	Commissioner (Appeals) / JC (Appeals)	GST Appellate Tribunal benches
Time Limit	3 months + 1 month (4 months hard cap)	3 months + 3 months (6 months hard cap)
Filing Form	APL-01	APL-05
Final Acknowledgement	APL-02	APL-06
Pre-Deposit	10% of disputed tax	Additional 10% (total 20% across stages)
Pre-Deposit Cap	Rs 20 crore per CGST/SGST	Rs 50 crore per CGST/SGST
Final Order	APL-04	GSTAT order
Disposal Timeline	1 year aspirational (Section 107(13))	No statutory aspirational period
Maximum Adjournments	3 (Section 107(8))	3 (Section 112(11))
Section 75(2) Downgrade	Available DIRECTLY at this stage	Only via REMAND to Proper Officer (GSTAT Delhi 2026)
Powers	Confirm, modify, annul, remand	Confirm, modify, annul, remand
Withdrawal Form	APL-01W (Jun 2025)	APL-05W
Onward Route	GSTAT under Section 112	High Court (Section 117) or Supreme Court (Section 118)

Related Services

GST Services - the complete GST services hub covering registration, returns, ITC, refunds, notices and audits.
GST Notice - the parent umbrella for all GST notice and appeal types.
GSTAT Appeal Filing - the second appellate stage and onward route from APL-04.
GSTAT Pre-Deposit Calculation - calculator for the second-stage pre-deposit.

Adjudication and pre-adjudication engagements that precede a Section 107 appeal - Section 73 GST Notice and Section 74 GST Notice (substantive SCN defence), DRC-01 and DRC-01A Response (the form-procedural pre-adjudication workflow), and ASMT-10 Notice (the Section 61 scrutiny stage) - are available as part of the integrated GST litigation backbone.

Legal and Compliance Framework

Element	Provision
Governing Act	Central Goods and Services Tax Act 2017
Primary Section	Section 107 CGST Act - Appeals to Appellate Authority
Section 107(1)	Any aggrieved person may file an appeal against an adjudicating authority order within 3 months
Section 107(2)	Commissioner may direct a subordinate officer to apply to the appellate authority for revision
Section 107(3)	Departmental Section 107(2) revision appeal time limit - 6 months
Section 107(4)	Appellate authority may condone a delay of an additional 1 month with sufficient cause
Section 107(6)	Mandatory 10% pre-deposit of disputed tax (subject to the maximum cap)
Pre-Deposit Cap	Rs 20 crore per CGST + Rs 20 crore SGST per appeal
Section 107(8)	Maximum 3 adjournments per party
Section 107(11)	Powers of appellate authority - confirm, modify, annul, remand
Section 107(13)	1-year aspirational disposal timeline
Departmental Revision	Section 108 CGST Act - revisional authority
Appeal Filing	Rule 108 CGST Rules - electronic filing in APL-01; Rule 109 - APL-03; Rule 108(3) - APL-02
Appeal Withdrawal	CGST Circular 250/07/2025-GST dated 24 June 2025 - APL-01W / APL-03W
Final Order	APL-04 under Section 107(11)
Statutory Downgrade	Section 75(2) - Section 74 to Section 73 auto-conversion if fraud unproven
Onward Appeal Route	Section 112 CGST Act - GSTAT appeal within 3 months of APL-04; Section 112(8) additional 10% pre-deposit
Recovery Stay	Section 107(6) implicit + Section 112(9) explicit
Article 226 Remedy	Constitution of India - writ jurisdiction for beyond-statutory delays
Section 128A Amnesty	Conditional waiver of interest and penalty for FY 2017-18 to 2019-20 Section 73 demands
Section 161 Rectification	DRC-08 rectification of apparent errors in DRC-07 or APL-04 within 6 months
Authorised Representation	Section 116 CGST Act - CA, CS, advocate, empanelled person
Recent Updates	April 2026 - GSTN editable pre-deposit field in APL-01
Key Case Law	Jyoti Construction (Electronic Cash Ledger for pre-deposit); GSTAT Delhi Bench 2026 (remand-only at GSTAT for Section 75(2))
Authority	CBIC and Commissioner / JC (Appeals)

Total pre-deposit across two stages: Section 107 (10 percent) + Section 112 GSTAT (additional 10 percent) = 20 percent of disputed tax. Recovery is automatically stayed on filing plus pre-deposit at each stage. The final remedy lies at the High Court (Section 117 on a substantial question of law) or Supreme Court (Section 118) - no further pre-deposit at the constitutional courts.

Section 75(2) downgrade positioning: Section 107 first appeal is the LAST stage where the appellate authority can directly downgrade a Section 74 demand to Section 73 (with a 10 percent penalty cap instead of 100 percent). GSTAT (per the Delhi Bench 2026 ruling) can only remand the matter to the Proper Officer - which adds 2-3 years. All Section 75(2) arguments must be fully developed at the Section 107 stage.

Limitation strictness: 3 months + 1 month condonable = a 4-month hard cap. Beyond 4 months, the statutory authority has no power to admit - only an Article 226 writ to the High Court remains, a position multiple High Courts have confirmed is absolute.

Authoritative references: India Code - Sections 107, 108, 112, 116, 128A, 161 CGST Act, CBIC Tax Information Portal (Rules 108, 109, 109A), CBIC Circular 250/07/2025-GST, GST Portal - Appeals to Appellate Authority, and CBIC Appeal Rules (Appeals and Revision).

What is a Section 107 GST appeal?

A Section 107 GST appeal is the first formal challenge by an aggrieved taxpayer against any order passed by an adjudicating authority under the CGST Act 2017 - typically a DRC-07 demand order under Section 73, 74, or 74A, a refund rejection order, a registration cancellation order, or other appealable orders. The appeal is filed electronically in Form APL-01 before the appellate authority (Commissioner or Joint Commissioner Appeals) within 3 months of order communication. The appeal admission is subject to mandatory 10 percent pre-deposit of disputed tax under Section 107(6), capped at Rs 20 crore per CGST and Rs 20 crore SGST. The final order is issued in Form APL-04 within the 1-year aspirational disposal timeline under Section 107(13).

What is the time limit for filing a Section 107 appeal?

The time limit is 3 months from the date of communication of the order being appealed against. The appellate authority can condone an additional 1 month delay at its discretion with sufficient cause shown, taking the maximum to 4 months. Beyond 4 months, the statutory authority cannot condone the delay regardless of reason - the only remedy is a writ petition under Article 226 of the Constitution before the jurisdictional High Court. Multiple High Court rulings have confirmed this 4-month cap is absolute, including for genuine medical emergencies. The 3-month clock starts from when the order is communicated (typically when uploaded to the GST portal).

What is the 10 percent pre-deposit under Section 107?

Under Section 107(6) of the CGST Act, an appeal cannot be admitted unless the appellant pays 10 percent of the disputed tax amount as pre-deposit. The maximum cap is Rs 20 crore per CGST and Rs 20 crore SGST per appeal. Pre-deposit is paid via the GST portal during APL-01 filing - the preferred method is Electronic Cash Ledger (per the Jyoti Construction case ruling) to avoid technical rejection issues. From April 2026, the GSTN has made the pre-deposit percentage field in APL-01 editable, allowing taxpayers to declare lower deposits where DRC-03 voluntary payments already exist against the same demand. The pre-deposit is refundable if the appeal succeeds.

What is Form APL-01 vs APL-04?

Form APL-01 is the appeal filing form - filed electronically by the appellant on the GST portal at gst.gov.in (Services > User Services > My Applications > Appeal to Appellate Authority). It contains statement of facts, grounds of appeal, disputed amounts, pre-deposit details, and supporting documents. Form APL-02 is the final acknowledgement issued by the appellate authority confirming admission of the appeal. Form APL-04 is the final order issued by the appellate authority disposing of the appeal under Section 107(11) - it contains the operative conclusion (confirmed, modified, annulled, remanded), reasoning, and quantum analysis. APL-04 is the order that triggers the 3-month window for onward GSTAT appeal under Section 112.

Can a Section 74 demand be downgraded to Section 73 at appeal stage?

Yes, under Section 75(2) of the CGST Act, if the appellate authority concludes that fraud, willful misstatement, or suppression of facts cannot be established by the proper officer, the demand under Section 74 must be treated as if raised under Section 73 - reducing penalty exposure from 100 percent to 10 percent. Critically, Section 107 first appellate stage is the LAST stage where this downgrade can be effected DIRECTLY without remand. The GSTAT Delhi Bench 2026 ruling confirmed that GSTAT cannot itself convert a Section 74 demand - the matter must be remanded to the Proper Officer for fresh determination under Section 73. Therefore, all Section 75(2) arguments must be fully developed at Section 107 stage.

What happens to recovery proceedings when I file Section 107 appeal?

On filing the appeal and paying the 10 percent pre-deposit, recovery of the disputed amount is automatically stayed. The disputed demand is flagged as non-recoverable on the GST portal. The admitted portion (which the taxpayer does not contest) must be paid 100 percent before appeal filing - this is not eligible for stay. The stay continues throughout the Section 107 appeal pendency and, if the appeal is partly or fully rejected at APL-04 and an onward GSTAT appeal is filed under Section 112 with additional 10 percent pre-deposit, the stay continues for the GSTAT pendency. Total pre-deposit across two stages is 20 percent of disputed tax for full recovery stay.

What is the disposal timeline for Section 107 appeals?

Section 107(13) of the CGST Act prescribes a 1-year aspirational disposal timeline from the date of appeal filing - but this is not a strict statutory deadline. In practice, Section 107 appeals are disposed within 12-24 months depending on the appellate authority workload, hearing scheduling, and case complexity. The maximum 3 adjournments per party under Section 107(8) limits delay tactics. High-value complex appeals can extend beyond 24 months. The 1-year aspirational period is used to track delays. After APL-04, the onward GSTAT appeal under Section 112 adds another 18-36 months.

Section 107 GST appeal kaise file karein?

Section 107 GST appeal first appellate authority (Commissioner Appeals ya JC Appeals) ke saamne file hota hai DRC-07 order ya kisi adjudicating order ke against. 3 mahine ka time limit hai order communication date se - aur 1 mahina extension condonable hai sufficient cause par. 4 mahine ke baad sirf High Court writ remedy hai. 10 percent pre-deposit zaroori hai under Section 107(6) - Rs 20 crore tak ka cap hai CGST aur SGST dono mein. Form APL-01 portal par file hota hai. APL-02 acknowledgement aata hai, hearings hote hain (max 3 adjournments), aur APL-04 final order milta hai. Recovery automatically stay ho jata hai filing aur pre-deposit ke baad. Section 74 demand par Section 75(2) ka downgrade YAHI stage par direct ho sakta hai - GSTAT mein sirf remand milta hai. Patron 350+ Section 107 appeals file kar chuka hai 78 percent favourable outcome rate ke saath. INR 19,999 se start.

Quick Answers

Section 107 Stage: First appellate authority - Commissioner Appeals / JC Appeals.
Time Limit: 3 months + 1 month condonable = 4 months HARD CAP.
Beyond 4 Months: Only Article 226 writ to the High Court remains.
Filing Form: APL-01 electronic on the GST portal.
Pre-Deposit: 10% of disputed tax under Section 107(6).
Pre-Deposit Cap: Rs 20 crore per CGST + Rs 20 crore SGST.
Recommended Payment: Electronic Cash Ledger (Jyoti Construction case).
Final Acknowledgement: APL-02 within 7 days.
Final Order: APL-04 within the 1-year aspirational period (Section 107(13)).
Maximum Adjournments: 3 per party under Section 107(8).
Section 75(2) Downgrade: Available DIRECTLY at this stage (GSTAT only via remand).
Withdrawal Form: APL-01W (Circular 250/07/2025-GST).
Onward Route: GSTAT under Section 112 + additional 10% pre-deposit.
Patron Fee: INR 19,999 standard; scales to INR 1,99,999+ for above Rs 5 crore demand.

Why the 3-Month Clock Cannot Be Ignored

Section 107 GST appeal carries the most rigid limitation framework in the entire GST adjudication architecture - 3 months from order communication, 1 additional month condonable, and an absolute 4-month hard cap beyond which the statutory authority has no power to admit regardless of cause. Multiple High Courts have upheld this cap as absolute, including for medical emergencies. The only remedy beyond 4 months is an Article 226 writ to the High Court.

The 10 percent pre-deposit under Section 107(6) (Rs 20 crore cap per CGST/SGST) is the entry-gate to admission, and the recently editable percentage field from April 2026 accommodates prior DRC-03 voluntary payments. Section 107 is also the LAST stage where a Section 75(2) downgrade from Section 74 to Section 73 can be effected DIRECTLY without remand - a successful downgrade saves 90 percent of penalty exposure, Rs 90 lakh on a Rs 1 crore tax demand.

Combined with the automatic recovery stay on filing plus pre-deposit and the 1-year aspirational disposal under Section 107(13), this is the foundational litigation engagement that materially determines the economic trajectory of every GST dispute. Patron engagement starts at Rs 19,999.

File Your Section 107 Appeal Before the Window Closes

Section 107 GST appeal is the foundational litigation engagement in the Indian GST adjudication framework - the first formal challenge against any adjudicating authority order including DRC-07 demand orders under Sections 73, 74, and 74A, refund rejection orders, registration cancellation orders, and various other appealable orders. The 3-month rigid limitation (with a hard 4-month cap), 10 percent pre-deposit gateway, automatic recovery stay on filing, and Section 75(2) downgrade availability make this the most strategically consequential single stage in the entire GST notice and appeal cascade.

Patron Accounting LLP runs this engagement with 15+ years of GST practice and 350 plus Section 107 appeals filed across the active client base, with Rs 400 crore plus in demand disputed and a 78 percent favourable outcome rate at APL-04 stage. The engagement is per-appeal scoped at Rs 19,999 onwards (Rs 99,999 for Rs 1-5 crore matters, Rs 1,99,999 plus for above Rs 5 crore matters).

Pair this with our parent GST Notice umbrella for general notice handling and GSTAT Appeal Filing for the onward second appellate stage - together they form an integrated GST litigation backbone covering scrutiny through to the Supreme Court if required.

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Content Created: 27 May 2026 | Last Updated: | Next Review: 1 September 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed quarterly (Tier 1 cadence) and on any CBIC circular on Section 107 procedure, GSTN portal update (such as the April 2026 editable pre-deposit field), or court ruling on limitation, pre-deposit, or Section 75(2) downgrade.

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