The Goods and Services Tax Appellate Tribunal (GSTAT) has constituted a Special Bench to hear matters concerning the condonation of delay in filing appeals under Sections 107 and 112 of the Central Goods and Services Tax (CGST) Act, 2017.

The constitution of the Special Bench comes at a time when conflicting judicial views on the applicability of the Limitation Act, 1963 to GST appellate proceedings have created considerable uncertainty. The issue has far-reaching consequences for taxpayers whose appeals have been dismissed as time-barred and for the tax administration seeking clarity on the scope of appellate powers.

According to a notice issued by the Principal Bench, GSTAT, New Delhi has been listed before the Special Bench for hearing on July 1, 2026. The notice directs all concerned parties to appear before the Tribunal on the scheduled date. 

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The Special Bench is expected to examine one of the most debated questions under the GST regime—whether appellate authorities and the GST Appellate Tribunal possess the power to condone delays beyond the maximum period expressly prescribed under the CGST Act.

The issue gained national prominence following the Calcutta High Court’s landmark judgment in S.K. Chakraborty & Sons v. Union of India.

In that decision, the High Court held that Section 5 of the Limitation Act, 1963 applies to appeals filed under Section 107 of the CGST Act, thereby empowering appellate authorities to condone delays beyond the statutory period where sufficient cause is established.

The ruling was widely welcomed by taxpayers, as it recognized that procedural delays should not automatically deprive litigants of substantive justice, particularly in deserving cases.

The legal position, however, remains unsettled.

The Supreme Court, in Joint Commissioner v. S.K. Chakraborty & Sons, has stayed the operation of the Calcutta High Court’s judgment, thereby suspending its precedential effect until the apex court finally decides the issue.

As a result, the question of whether the Limitation Act supplements the appellate mechanism under the CGST Act continues to remain open.

The Special Bench’s consideration of similar issues is therefore expected to attract considerable attention from taxpayers, legal practitioners, and tax authorities alike.

Section 107 of the CGST Act provides the first appellate remedy against orders passed by adjudicating authorities.

The provision prescribes a three-month limitation period for filing an appeal by the taxpayer; a further one-month period within which the appellate authority may condone delay if sufficient cause is shown.

Similarly, Section 112 governs appeals before the GST Appellate Tribunal and also prescribes specific limitation periods along with a limited power of condonation.

The central controversy is whether these statutory provisions constitute a complete code on limitation or whether the broader provisions of the Limitation Act, 1963, particularly Section 5, can be invoked to condone delays beyond the outer statutory limit.

The Special Bench’s eventual ruling could have significant implications for thousands of pending and future GST disputes involving delayed appeals.

A decision recognizing wider powers of condonation may provide relief to taxpayers who lost their appellate remedies due to delays caused by genuine hardship, technical glitches, or transitional challenges during the implementation of GST.

Conversely, if the Tribunal adopts a strict interpretation of the limitation provisions, taxpayers may continue to face rigid timelines with limited scope for equitable relief.

The proceedings are also likely to influence how appellate authorities interpret limitation provisions until the Supreme Court finally settles the controversy.

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