![Rationalise Fees Prescribed for GSTAT [READ REPRESENTATION]](https://www.jurishour.in/wp-content/uploads/2026/02/GSTAT-27.jpg "Rationalise Fees Prescribed for GSTAT [READ REPRESENTATION]")
The Sales Tax Bar Association under the leadership of the President, Sanjay Kunar Sharma has filed the representation before the Finance Minister Nirmala Sitharaman seeking urgent rationalisation of the fees prescribed for filing appeals before the Goods and Services Tax Appellate Tribunal (GSTAT), raising serious concerns over access to justice for small taxpayers, MSMEs, and individual litigants under the GST regime.
It states that the current fee structure is excessive, disproportionate, and contrary to the constitutional principles of fairness and equality.
Comparative Fee Structure: GST Appellate Tribunal (GSTAT) vs Income Tax Appellate Tribunal (ITAT)
| Particulars | GST Appellate Tribunal (GSTAT) | Income Tax Appellate Tribunal (ITAT) |
| Basis of appeal fee | ₹1,000 per ₹1 lakh of disputed tax / ITC / penalty / fine (Rule 110(5) of CGST/SGST/UTGST Rules, 2017) | Slab-based on assessed income |
| Minimum appeal fee | ₹5,000 | ₹500 |
| Maximum appeal fee | ₹25,000 | ₹10,000 |
| Appeal against cancellation of registration / refund | ₹5,000 | ₹500 |
| Appeal with no tax effect | ₹5,000 | ₹500 |
| Interlocutory applications / Miscellaneous applications | ₹5,000 (Rule 118(2) of GSTAT Procedural Rules, 2025) | ₹500 |
| Application for inspection of records | ₹5,000 (Rule 67 of GSTAT Procedural Rules, 2025) | ₹20 per hour (inspection) and ₹10 per hour (copies) |
Background: GSTAT and Its Role
The GST Appellate Tribunal was envisaged as the final fact-finding authority under the GST framework, providing an effective appellate remedy against orders passed by Appellate Authorities under Central and State GST laws. With GSTAT benches now being notified and operationalised after years of delay, taxpayers have begun closely examining procedural and financial barriers associated with tribunal litigation.
High Fees Allegedly Undermine Access to Justice
According to the petition, the prescribed appeal fees before GSTAT—linked to the amount of tax, interest, penalty, or fine in dispute—place an unreasonable financial burden on appellants. The petitioner contends that such a fee structure disproportionately affects small and medium taxpayers, many of whom are already facing liquidity stress due to tax demands, recovery proceedings, and penalties.
The petition highlights that mandatory pre-deposit requirements under GST law already compel taxpayers to deposit a percentage of disputed tax before filing an appeal. Imposing high tribunal fees in addition to pre-deposit obligations, it argues, amounts to a double financial barrier.
Comparison with Other Tribunals
A key argument raised is the stark contrast between GSTAT fees and those charged by other statutory tribunals such as the Income Tax Appellate Tribunal (ITAT), Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and various High Courts. In many of these forums, appeal fees are either nominal or capped at a relatively low amount, irrespective of the dispute value.
The petition asserts that GST litigants are being unfairly singled out, despite GST being a destination-based consumption tax impacting a far broader base of businesses and individuals.
Constitutional and Legal Concerns Raised
The petitioner argues that the present fee structure may violate Article 14 (Right to Equality) and Article 19(1)(g) (Right to Practice Any Profession or Trade) of the Constitution. By making appellate remedies financially prohibitive, the rules allegedly discourage legitimate challenges to erroneous tax demands and arbitrary adjudication.
The petition further notes that access to appellate justice is an integral part of due process and cannot be rendered illusory through excessive procedural costs.
Key Reliefs Sought
The petition seeks the following reliefs from the competent authority:
- Rationalisation and downward revision of GSTAT appeal fees
- Introduction of a reasonable upper cap on appeal fees
- Parity with fee structures applicable before other national tribunals
- Consideration of graded or concessional fees for MSMEs and small taxpayers
Wider Implications for GST Litigation
Tax professionals and industry bodies have long expressed concern that GST litigation has become increasingly expensive and complex. With GSTAT expected to handle thousands of pending disputes transferred from High Courts, the outcome of this petition could significantly impact litigation strategy, compliance behaviour, and taxpayer confidence in the GST framework.
Legal experts observe that if the fee issue is not addressed promptly, it may result in reduced filings before GSTAT and increased writ petitions before High Courts, defeating the very purpose of setting up a specialised appellate tribunal.
What Lies Ahead
The petition has added momentum to the broader debate on making GST dispute resolution more taxpayer-friendly. Stakeholders are now awaiting a policy response or judicial intervention that balances revenue interests with constitutional guarantees of access to justice.
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