In a recent update, the GST Network (GSTN) has announced that the GST Portal is now enabled to file appeals against the waiver orders (SPL 07).

This update primarily concerns taxpayers who have received a rejection order in Form SPL-07 after applying for a waiver through SPL-01 or SPL-02. These may be an Acceptance Order under SPL-05 or a Rejection Order under SPL-07

Background: Process to be Followed by Waiver

Taxpayers affected by tax demands or penalties may choose to have their interest, late fees, or penalties waived in tax through the GST law by submitting applications in either Form SPL-01 or SPL-02.

Based on these applications, the jurisdictional authorities either issue

Acceptance Order (SPL-05) - Accept the waiver, or Rejection Order (SPL-07) , Reject the waiver request. Appeal applications (APL 01): To Appeal the Application

Until now, there was no provision to challenge a rejection order (SPL-07) online. However, the GST Network (GSTN) has now enabled the portal to allow the filing of appeal applications (APL-01) against such rejection orders.

New Feature: Appeal Filing Against SPL-07

With this new functionality, taxpayers who have received a rejection order in SPL-07 can now file an appeal online through the GST portal. The process is seamless and follows a few simple steps:

Steps to File Appeal Against SPL-07 Rejection Order:

Navigate to Services → User Services → My Application.
From the drop-down menu, select “Appeal to Appellate Authority” as the Application Type. To start the appeal procedure, the button marked New Application should be clicked. Click on “New Application” to initiate the appeal process.

In the appeal application form:

Under Order Type, choose “Waiver Application Rejection Order.”
Enter the relevant details associated with the rejection order (SPL-07).
Complete the form and proceed to file the appeal.

It is important that taxpayers provide correct information in all fields, and necessary documents should be uploaded during the submission of an appeal, since, so far, there is no possibility of withdrawing an appeal after filing under this tax waiver scheme.

Additionally, taxpayers who are not interested in appealing against the SPL-07 rejection order but wish to revive a previously withdrawn appeal (filed against the original demand order) may do so by furnishing an undertaking. This facility is available under the “Orders” section in the “Waiver Application” case folder.

Restoration of Earlier Appeal Option Now Available

Team GSTN has also given a word of caution that once an appeal application has been made under this waiver scheme, the same cannot be withdrawn in the portal. Therefore, it is highly recommended that the taxpayers clear the information and make use of the implications before formally entering the appeal.

Additionally, there might be cases where a taxpayer, instead of appealing against the SPL-07 rejection, chooses to restore an earlier appeal that was withdrawn to file the waiver application.

This is particularly relevant for those who had withdrawn appeals against original demand orders in favor of submitting a waiver request.

In such scenarios, taxpayers can restore their original appeal by submitting an undertaking.

The option to file this undertaking is available on the GST portal under:

Orders → Waiver Application → Case Folder → Undertaking Upload Option

This enables the taxpayer to revive the original appellate process instead of initiating a new one against the rejection.

Final Note from Portal

The update of this portal is a good initiative as it supports the aspects of natural justice, as well as offering a formal appeal to the taxpayers in instances of non-concession of waiver benefits. Through this improvement, the GST administration keeps leveraging transparency and procedural fairness to ensure that aggrieved taxpayers do not go without a remedy.

Taxpayers are encouraged to take quick action should they get an SPL-07 rejection and decide to appeal against it. At the same time, before submission, much attention is to be paid to the fact that post-filing withdrawal is not supported now.