STBA Flags Burden of High GSTAT Appeal Fees, Seeks Intervention from CBDT, Finance & Law Ministries [Read Order]
The Sales Tax Bar Association has cautioned that high GSTAT appeal fees may prejudice the access to delivery of justice.
The Sales Tax Bar Association (STBA) has flagged the burden of high appeal fees for filing matters before the Goods and Services Tax Appellate Tribunal (GSTAT), calling for urging intervention from the Central Board of Indirect Taxes and Customs (CBDT), the Ministry of Finance, and the Ministry of Law and Justice to rationalise the current fee structure.
The GSTAT has become fully functional across the country, with the Principal Bench at New Delhi fully functional, and State and regional benches now active in Chennai, Cuttack, Mumbai, Kolkata, Hyderabad, Bengaluru, Ahmedabad, Jaipur, Jodhpur and several other centres across the North, East, Central and Western regions.
Through a series of representations dated February 4, 2026, separately addressed to these authorities, the STBA highlights that the intent of the GST regime was to deliver a simplified and taxpayer-friendly indirect tax framework.
However, the lack of a dedicated effective statutory appellate remedy for nearly eight years compelled aggrieved taxpayers to approach High Courts through writ petitions - a method that the STBA described as neither accessible nor affordable for small traders, MSMEs, and individual assessees.
High Fees and Unjust Financial Burden
Against this backdrop, the STBA contended that the prevailing GSTAT fee structure curtails the very objective of providing an accessible appellate forum. Referencing the Articles 14, 19(1)(g), and 265 of the Constitution, the STBA asserted that exorbitant appeal fees are arbitrary, impede the fundamental right to carry on trade and profession and effectively impose an unjust financial burden on the aggrieved.
Fee Comparison with the ITAT
A key portion of the representation carries out a comparative analysis between the fee structures of the GSTAT and the Income Tax Appellate Tribunal (ITAT), highlighting that GSTAT fees are disproportionately and significantly higher despite both forums adjudicating similar types of fiscal disputes.
For comparison, the GSTAT has a minimum appeal fee of ₹5,000 in comparison with the ₹500 of the ITAT; the GSTAT further required a mandatory pre-deposit of 10% of the disputed tax/penalty while such fee is not mandatory before the ITAT.
The STBA claims that this disparity is likely to result in increased acceptance of unjust tax demands, reduce faith in the appellate mechanism and put economic stress on businesses.
In its prayer, the STBA sought urgent rationalisation and reduction of GSTAT appeal and application fees, reduction of fees for miscellaneous, rectification, and interlocutory applications and lowering of the maximum cap on appeal fees.
Another request sought the introduction of graded or concessional fees for MSMEs and individual taxpayers.
How the -authorities will respond to the concern raised by an eminent body such at the STBA would provide a marker of the administrative trajectory of the GSTAT.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
