From the first scrutiny notice to the final GSTAT or High Court hearing, AMLEGALS handles GST disputes across demand defence, ITC denial, classification, assessment, refund rejection and appellate litigation — combining statutory depth with tribunal and courtroom experience.
India's GST regime, operational since 1 July 2017, now generates over ₹20 lakh crore in annual revenue. With 1.46 crore registered taxpayers and an increasingly data-driven compliance architecture (auto-populated returns, e-invoicing, e-way bills, AI-based risk scoring), the volume and complexity of GST disputes has grown exponentially. The FY 2025–26 GST demand pipeline exceeds ₹2.5 lakh crore.
GST disputes span multiple intersecting domains: the CGST Act 2017, the IGST Act 2017, corresponding SGST Acts, the GST Compensation Cess Act 2017, and over 1,100 notifications, circulars and advance rulings issued since inception. A classification dispute can simultaneously implicate ITC eligibility, place of supply, export entitlement and anti-profiteering liability. The emerging Section 74A (merged demand provision) adds a new procedural dimension.
AMLEGALS provides dispute resolution that begins before the SCN: compliance health-checks, audit response strategy, and pre-litigation advisory that shapes favourable outcomes. Where disputes materialise, the practice extends through adjudication, appellate authority, GSTAT and High Court — with an approach anchored in statutory text, CBIC circulars and binding precedent.
Defence of show cause notices under the CGST Act 2017 — Section 73 (non-fraud, three-year limitation), Section 74 (fraud/suppression, five-year limitation, 100% penalty) and the new Section 74A (merged provision). SCN reply drafting, personal hearing representation, adjudication strategy and pre-deposit optimisation for appeal.
ITC denial and reversal disputes: blocked credits under Section 17(5), ITC reversal for exempt supplies (Rules 42 and 43), transitional credit (TRAN-1/TRAN-2) disputes, ITC mismatch between GSTR-2A/2B and GSTR-3B, supplier default and Rule 86A blocking orders, ITC on capital goods, and cross-charge and ISD distribution disputes.
HSN/SAC classification disputes affecting applicable rate of tax, composite vs mixed supply characterisation (Sections 8 and 2(30)/2(74)), place of supply disputes (Sections 10–14 of IGST Act), taxability of specific transactions (slump sale, development rights, joint development, works contracts), and advance ruling challenges.
Representation in scrutiny proceedings (Section 61), departmental audit (Section 65), special audit (Section 66), and summary assessment (Section 64). Best judgment assessment challenges, audit observation responses, and ensuring proceedings conclude without escalation to demand.
Refund applications under Section 54: inverted duty structure refunds, zero-rated supply refunds (export with/without payment), excess cash ledger refunds, and refund of tax paid on deemed exports. Unjust enrichment defence, deficiency memo responses, and appeal against partial or rejected refund orders.
GST registration cancellation challenges (Section 29/30), registration amendment disputes, e-way bill expiry and detention under Section 129, confiscation of goods and conveyances under Section 130, and tax recovery during transit. Includes writ petition strategy for registration restoration.
Defence before the Directorate General of Anti-Profiteering (DGAP) and the Competition Commission of India (CCI, which has assumed the NAA's function): computation methodology challenges, commensurate benefit pass-through disputes, penalty under Section 171, and appeal to High Courts.
Appeals before GSTAT (Section 112), pre-deposit applications, stay of demand, High Court writ petitions (Article 226) for constitutional challenges and procedural violations, High Court appeals from GSTAT on questions of law (Section 117), and Supreme Court petitions under Article 136.
| Forum | Statutory basis | Key features |
|---|---|---|
| Appellate Authority | Section 107 | First appeal from orders of adjudicating authority. Filed within 3 months (extendable by 1 month). Pre-deposit: 10% of remaining disputed tax (max ₹20 crore CGST + ₹20 crore SGST). |
| GSTAT | Section 112 | Second appeal from orders of Appellate Authority. Filed within 3 months. Additional pre-deposit: 10% of remaining tax (max ₹20 crore CGST + ₹20 crore SGST). Principal Bench in New Delhi; State Benches. |
| High Court | Section 117 | Appeal from GSTAT on substantial questions of law. Filed within 180 days. No further pre-deposit. Also writ jurisdiction under Article 226 for constitutional challenges. |
| Supreme Court | Article 136 | Special Leave Petition against High Court orders. Also direct appeals in matters of national importance. No statutory pre-deposit. |
| Advance Ruling Authority | Section 98 | Prospective ruling on classification, rate, place of supply, ITC eligibility. Binding on applicant and jurisdictional officer. Appealable to Appellate Authority for Advance Ruling (Section 100). |
Pre-deposit amounts and limitation periods are as per the CGST Act 2017 (as amended). Caps reflect the Finance (No. 2) Act 2024 (effective 1 November 2024). The Principal Bench was inaugurated on 24 September 2025 and the appeal-filing portal launched on the same date; benches commenced regular hearings from early 2026. Appeals against orders communicated before 1 April 2026 were required to be filed by 30 June 2026.
AMLEGALS handles the full spectrum of GST disputes under the CGST Act 2017 and corresponding SGST Acts: show cause notice defence under Sections 73 (non-fraud), 74 (fraud, suppression, wilful misstatement) and 74A (the merged demand provision effective from specified date), input tax credit (ITC) disputes including blocked credits under Section 17(5) and ITC reversal under Rules 42 and 43, classification and rate disputes, assessment and audit proceedings under Sections 61, 65 and 66, refund and export disputes, registration cancellation challenges, e-way bill and detention disputes under Section 129, and appellate litigation before the Appellate Authority, GSTAT and High Courts.
Section 73 applies to demand and recovery where the tax was not paid or short-paid without any fraud, suppression or wilful misstatement — the limitation period is three years. Section 74 applies where fraud, suppression, wilful misstatement or collusion is alleged — the limitation period is five years, and the penalty is equal to 100% of the tax due. Section 74A is the new merged provision (introduced by the Finance Act 2024, effective from a date to be notified) that collapses Sections 73 and 74 into a unified demand provision with a common limitation period, differentiated penalty based on whether fraud is involved. Once Section 74A comes into force, Sections 73 and 74 will be superseded for new cases.
The GST Appellate Tribunal (GSTAT) is constituted under Section 109 of the CGST Act 2017 (as reconstituted by the Finance Act 2023). The Principal Bench sits in New Delhi with State Benches across India. Appeals from orders of the Appellate Authority (first appeal under Section 107) lie to GSTAT under Section 112. The pre-deposit at GSTAT is a further 10% of the remaining disputed tax, in addition to the 10% paid at the first appeal stage, capped at ₹20 crore CGST and ₹20 crore SGST. The appeal must be filed within three months from the date of communication of the order. GSTAT orders on questions of law can be appealed to the High Court under Section 117.
For the first appeal to the Appellate Authority under Section 107: full admitted tax must be paid, plus a mandatory pre-deposit of 10% of the remaining disputed tax (subject to a maximum of ₹20 crore CGST and ₹20 crore SGST). For the second appeal to GSTAT under Section 112: an additional 10% of the remaining disputed tax as pre-deposit (subject to a maximum of ₹20 crore CGST and ₹20 crore SGST, following the Finance (No. 2) Act 2024 with effect from 1 November 2024). No further pre-deposit is required for appeals to the High Court or Supreme Court.
Yes. Cancellation of GST registration under Section 29 can be challenged through: revocation application under Section 30 (within 30 days of cancellation, extendable by 180 days by Additional/Joint Commissioner on sufficient cause); first appeal under Section 107 if revocation is rejected; and writ petition under Article 226 before the High Court if the cancellation is without proper SCN, without opportunity of hearing, or is otherwise arbitrary. The Supreme Court in several orders has directed restoration of cancelled registrations where procedural violations were found.
GST scrutiny under Section 61 involves the officer examining the return and seeking clarification or additional information — it can result in acceptance, voluntary correction, or escalation to Section 73/74/74A proceedings. GST audit under Section 65 is conducted by the Commissioner or authorised officers at the place of business with at least 15 days's notice. Audit under Section 66 (special audit) is ordered when complexity is found during scrutiny, and is conducted by a chartered accountant or cost accountant nominated by the Commissioner. In all cases, proper response to audit observations is critical to prevent conversion into demand proceedings.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
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