GST Appeal Limitation Starts From Date Of Rejection Of Rectification Order: Gujarat High Court

Recently, the Gujarat High Court clarified that when a rectification application is filed, the limitation period for filing an appeal under Section 107 of the CGST Act runs from the date of disposal of the rectification application, not the original order.

A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi noted the delay in adjudication where a rectification application against an original order dated 12 August 2024 was filed on 5 November 2024, to be decided within three months. However, the rectification application was finally disposed of on 19 March 2025.

The Court opined:

“...in the present case, the limitation would start running from 20.03.2025 on the rejection of the rectification application filed by the petitioner since it is rejected on 19.03.2025. The petitioner within a period of one week i.e. on 25.03.2025 has filed an appeal challenging the order dated 12.08.2024. Thus, the appellate authority was required to examine the details filled in by the petitioner in Form GST APL-01 before rejecting the appeal on the ground of delay. The filing and disposal of the rectification application against the order dated 12.08.2024 was a vital aspect which would directly impact on the calculation of the limitation period provided under Section 107 of the Act.”

The case arose from a blanket dismissal of an appeal filed by a supplier against the assessment order of 12 August 2024.

The Department contended that the appeal against the assessment order was filed beyond 225 days and was therefore barred. It also argued that the rectification order had remained unchallenged.

The High Court held that the appeal filed against the rejection of the rectification application was within time. Reiterating the principle established in decisions including SPK and Co., the Court held that if rectification under Section 161 is sought and rejected, the limitation period for appeal starts from the date of the rectification order, not the original assessment.

Accordingly, the petition was allowed, and the matter was remanded to the appellate authority for fresh consideration after hearing the petitioner and passing a reasoned order.

For Petitioner: Advocate Apurva N Mehta

For State: AGP Pooja Ashar