The Government has, through Notification S.O. 4220(E) dated September 17, 2025, fixed June 30, 2026 as the last date for filing appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) in respect of orders passed by appellate authorities over the past eight years.
It is learnt that department started filing appeals as the GSTAT portal allows filing of the appeals by the department
While the move has brought significant clarity and relief to taxpayers awaiting the operationalisation of the Tribunal, an important legal question has now emerged—does this notification also apply to departmental appeals, or is a separate notification required?
The notification has been issued in exercise of powers under Section 112(1) of the Central Goods and Services Tax (CGST) Act, 2017.
Relevant provisions extracted below may be read to understand the issue in proper perpective.
Section 112 (1). Appeals to Appellate Tribunal:
Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal [; or the date, as may be notified by the Government, on the recommendations of the Council, for filing appeal before the Appellate Tribunal under this Act, whichever is later.]
This provision governs the right of “any person aggrieved” to file an appeal before the GSTAT within three months from the date of communication of the order, or within such extended timeline as may be notified by the Government. By invoking this power, the Government has effectively provided a fresh window to taxpayers to file appeals, especially in cases where the Tribunal was not functional earlier.
Section 112 (3). Appeals to Appellate Tribunal:
The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or Commissioner of Union territory tax, call for and examine the record of any order passed by the Appellate Authority or the Revisional Authority under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act for the purpose of satisfying himself as to the legality or propriety of the said order and may, by order, direct any officer subordinate to him to apply to the Appellate Tribunal within six months from the date on which the said order has been passed [; or the date, as may be notified by the Government, on the recommendations of the Council, for the purpose of filing application before the Appellate Tribunal under this Act, whichever is later,] 1 for determination of such points arising out of the said order as may be specified by the Commissioner in his order.
However, the situation becomes less clear when one turns to Section 112(3) of the CGST Act, which specifically deals with appeals filed by the department. Under this provision, the Commissioner may direct a subordinate officer to file an appeal before the Tribunal within six months from the date of the order. Notably, this subsection also contains a similar proviso allowing appeals to be filed within a “notified date,” as may be prescribed by the Government.
This raises a critical interpretational issue. Since the notification dated September 17, 2025 has been issued explicitly under Section 112(1), it is arguable that the benefit of the extended timeline up to June 30, 2026 is available only to taxpayers and not to the department. The absence of an express reference to Section 112(3) in the notification lends weight to this view.
On the other hand, a broader and purposive interpretation may suggest that the Government’s intention was to operationalise the Tribunal and provide a uniform window for all pending appeals, irrespective of whether they are filed by taxpayers or the department. Given that both subsections contain similar language empowering the Government to notify a date, one could argue that the notification implicitly covers departmental appeals as well.
The issue is not merely academic. If the notification is held to be applicable only to taxpayers, then departmental appeals would continue to be governed strictly by the six-month limitation period under Section 112(3), potentially leading to a situation where many such appeals become time-barred. Conversely, if the notification is interpreted to cover both categories, it would ensure parity and avoid unnecessary litigation on limitation grounds.
It can be concluded that issuing a notification under Section 112(3) would resolve possible litigation on limitation on departmental appeal including where appeals were filed by the department.
Tax professionals are now closely watching for clarification from the Government or the GST Council. In the absence of a specific notification under Section 112(3), there remains a degree of uncertainty that could impact pending and future departmental appeals before the GSTAT.
As the GST appellate framework moves towards full functionality, resolving this ambiguity will be crucial to ensure consistency, fairness, and legal certainty for both taxpayers and the tax administration.
