What is the National Appellate Authority for Advance Ruling (NAAR)?

NAAR is the national-level appellate body under Section 101A CGST Act 2017 that hears appeals against conflicting advance rulings from AAAR bodies in two or more states. From April 2026, the GSTAT Principal Bench at New Delhi serves as NAAR following the 56th GST Council recommendation of 03 September 2025.

When will NAAR become operational?

The 56th GST Council meeting on 03 September 2025 recommended that the GSTAT Principal Bench act as NAAR from April 2026. Finance Minister Nirmala Sitharaman confirmed this at the GSTAT launch on 24 September 2025. Specific operational gazette notifications are awaited.

Can I appeal any AAAR order to NAAR?

No. Under Section 101B CGST Act, an appeal to NAAR lies only where conflicting advance rulings have been given by the AAAR in two or more states or union territories. An adverse ruling from one state alone is not appealable to NAAR. The remedy in such cases is a High Court writ under Article 226.

What is the time limit for a NAAR appeal?

30 days from the date of the AAAR order under Section 101B CGST Act. Condonation of up to 30 additional days may be granted on sufficient cause. Beyond the 60-day outer limit, the right to appeal to NAAR is permanently lost. This is the shortest appellate limitation in the GST framework.

What is the difference between AAR, AAAR, and NAAR?

AAR under Section 96 is the state-level first authority that pronounces advance rulings. AAAR under Section 99 is the state-level appellate authority. NAAR under Section 101A is the national authority that resolves conflicts between AAAR rulings of different states. From April 2026, NAAR is housed at the GSTAT Principal Bench at New Delhi.

Is pre-deposit required for a NAAR appeal?

No pre-deposit in the Section 112(8) sense. The fee for filing a NAAR appeal is Rs 10,000 under CGST plus state fee. This is significantly lower than the 10% pre-deposit required for GSTAT appeals under Section 112. NAAR appeals under Section 101B operate under a distinct advance ruling appellate framework.

What happens after NAAR passes an order?

The NAAR order harmonises the conflicting rulings and creates a binding ruling applicable pan-India on the question at issue. It supersedes the conflicting AAAR orders in all concerned states. Further appeal against a NAAR order lies to the High Court on substantial questions of law only.

What form is used for a NAAR appeal?

Form GST ARA-03 is the prescribed form under the CGST Rules. Once NAAR is operational at the GSTAT Principal Bench from April 2026, filing may migrate to the GSTAT e-filing portal at efiling.gstat.gov.in. Patron Accounting monitors all gazette notifications to ensure timely filing.

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GSTAT Appeal: Restaurants: Resolve Conflicting GST Rulings at GSTAT

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Dispute Types: GST rate classification disputes - 5% vs 18% - and ITC denial on restaurant renovation and fit-out

Pre-Deposit: 10% pre-deposit at GSTAT stage under Section 112(8) CGST Act - capped at Rs 20 crore

Deadline: 3-month appeal deadline from order date under Section 112(1) CGST Act 2017

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As a cloud kitchen operating across three states, our Section 9(5) platform TCS dispute was complex. Patron Accounting's combined GST and e-commerce expertise made the GSTAT appeal strategy clear and actionable.

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Overview GST Rate Disputes Who Should File Our Services 7-Step Process Documents Pre-Deposit & Fees Why Patron GSTAT vs HC Writ Legal Framework FAQs

GSTAT Appeal for Restaurants - Overview

TL;DR: 1. File GSTAT appeal within 3 months under Section 112(1) CGST Act. 2. Pay 10% pre-deposit on disputed tax under Section 112(8) - capped at Rs 20 crore. 3. Contact Patron Accounting for restaurant GST rate and ITC dispute representation.

Parameter	Details
Industry Focus	GST rate disputes (5% vs 18%), specified premises classification, ITC denial on renovation, food delivery TCS, composition scheme
Pre-Deposit	10% of disputed tax under S.112(8) - capped at Rs 20 crore CGST
Time Limit	3 months from order communication under S.112(1)
Stay of Recovery	Automatic under S.112(9) on filing with pre-deposit
Filing Portal	efiling.gstat.gov.in via Form GST APL-05
Backlog Deadline	30 June 2026 for pre-1 April 2026 orders

Restaurants facing GST rate reclassification demands, ITC denial on renovation and fit-out, or food delivery platform TCS disputes now have a dedicated appellate remedy through GSTAT. GSTAT appeal for restaurant GST rate disputes under Section 112 CGST Act 2017 requires specialist representation combining knowledge of restaurant-specific GST notifications - Notification 46/2017 (5% rate), specified premises classification, Section 9(5) ECO liability - with tribunal litigation strategy. Patron Accounting provides this through our GSTAT practice.

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Surbhi Premi

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Former Partner, Lakshmikumaran & Sridharan15+ Years GST, Customs & FTPGoldman Sachs Alumni500+ Large Domestic & MNC Clients

Surbhi Premi led the Indirect Tax practice at Lakshmikumaran & Sridharan as Partner and served on LKS Team Velocity. Her Goldman Sachs background and deep expertise in GST enables viable solutions for complex restaurant GST rate disputes, specified premises classification challenges, and hospitality sector ITC issues at GSTAT.

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What Is a GSTAT Appeal for Restaurant GST Rate Disputes?

Definition: A restaurant GST rate dispute arises when the tax authority reclassifies a restaurant's supply from the concessional 5% GST rate under Notification 46/2017 to 18% GST on the ground that the restaurant operates within specified premises, or denies ITC claimed on renovation, fit-out, or capital goods.

When the first appellate authority under Section 107 CGST Act upholds a GST rate reclassification demand or ITC denial, the restaurant may file a second appeal before GSTAT under Section 112 CGST Act 2017 within 3 months.

GSTAT vs Commissioner (Appeals): GSTAT, unlike the Commissioner (Appeals) under Section 107, is a judicial body - its orders carry the force of a court decree, making it the first genuinely independent forum for resolving restaurant GST rate disputes.

Key Terms:

Specified Premises - Hotel/premises with room tariff above Rs 7,500 - restaurants here pay 18% GST with ITC
Notification 46/2017 - Concessional 5% GST rate for standalone restaurant services without ITC
Section 9(5) - ECO (Swiggy/Zomato) liable to pay GST on restaurant services via platform
Composition Scheme (Section 10) - 5% GST for restaurants with turnover up to Rs 1.5 crore
Pre-Deposit - 10% of disputed tax under Section 112(8), capped at Rs 20 crore

Restaurant GST Dispute Types Leading to GSTAT Appeal

Who Should File a GSTAT Appeal for Restaurant GST Rate Disputes

Restaurant owners, hospitality groups, QSR chains, cloud kitchens, and outdoor catering businesses that have received an adverse order from the Commissioner (Appeals) under Section 107 CGST Act should consider filing. Common triggers include:

GST rate reclassification demands (5% to 18%) - Specified premises classification disputes
ITC denial on restaurant renovation, fit-out, and capital goods - Section 17(5) blocked credit
Food delivery platform TCS disputes - Section 9(5) ECO liability and GSTR-8 mismatches
Composition scheme eligibility disputes under Section 10 - Reclassification from composition to regular
Outdoor catering GST rate disputes - 18% vs 5% rate classification

Under Section 112(1), the appeal must be filed within 3 months. For orders before 1 April 2026, deadline extends to 30 June 2026.

6 GSTAT Services for Restaurant GST Rate Disputes

Service	What We Do
GST Rate Classification Assessment	Analyse the rate reclassification demand, assess specified premises classification, and calculate pre-deposit under Section 112(8)
Grounds of Appeal for Restaurant Disputes	Structure legal arguments on 5% vs 18% rate, specified premises definition, ITC eligibility on renovation, and Notification 46/2017 interpretation
Form GST APL-05 E-Filing	Complete electronic filing on efiling.gstat.gov.in with supporting documentation
Stay of Recovery Under Section 112(9)	Secure automatic stay against recovery of GST differential demand during appeal proceedings
Hearing Representation	Advocate representation before all 31 State Benches and the Principal Bench at New Delhi
High Court Writ Under Article 226	Alternative remedy where GSTAT appeal window has expired or jurisdictional issues arise

Our Process

7 Steps to File a GSTAT Appeal for Restaurant GST Rate Disputes

Our end-to-end process for restaurant GSTAT appeals under Section 112

Step 1

Review Impugned Order

Obtain the first appellate order relating to GST rate reclassification, ITC denial on renovation, or specified premises classification demand.