The Supreme Court held that the CBIC’s ₹2 crore monetary threshold for filing GST appeals applies to pending departmental appeals, leading to dismissal of an appeal involving ₹25.47 lakh.
GST: ₹2 Crore Limit Applies to Pending Appeals
The Supreme Court ruled that the Central Board of Indirect Taxes and Customs (CBIC) notification setting a ₹2 crore monetary limit for filing appeals in GST matters applies to pending departmental appeals. As a result, the Court dismissed an appeal pending before it, where the tax effect was only ₹25.47 lakh, well below the stipulated threshold.
The decision clarifies that the policy restriction is not limited to future cases but operates retrospectively on pending appeals, requiring departments to evaluate whether continuation of litigation is justified. The Court emphasized administrative efficiency and the need to avoid litigation over trivial sums, thereby promoting fiscal discipline.
The threshold policy must be applied across the board, including pending cases, to ensure consistency and prevent unnecessary burden on the appellate system.
This ruling will significantly affect the strategy of tax authorities in maintaining or withdrawing appeals below the ₹2 crore mark. Tax practitioners should assess the viability of ongoing departmental appeals in light of this binding clarification, especially where the tax demand is marginal.
