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The GST Council has recommended a ₹40 crore upper limit on the pre-deposit for certain GST appeals involving only a penalty and no demand of tax. The proposed total is split between ₹20 crore under CGST and ₹20 crore under SGST/UTGST. The recommendation is not, by itself, proof that the cap is in force: the Council’s release does not establish that the relevant amendment has been enacted or commenced.
What the ₹40 crore recommendation covers
A pre-deposit is an amount a taxpayer must pay to file a relevant appeal. At its 57th meeting, the GST Council recommended amending the provisos to sections 107(6) and 112(8) of the Central Goods and Services Tax Act, 2017. The proposed limit concerns an order involving only a penalty, with no demand of tax.
The Council described the proposed ceiling as ₹40 crore in total: ₹20 crore CGST plus ₹20 crore SGST/UTGST. Its release does not explain the detailed calculation mechanics beyond those figures and provisions.
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| Appeal forum | Provision identified by the Council | Qualifying order | Proposed cap stated in the release |
|---|---|---|---|
| Appellate Authority | Section 107(6) | Penalty only, with no demand of tax | ₹40 crore total: ₹20 crore CGST and ₹20 crore SGST/UTGST |
| Appellate Tribunal | Section 112(8) | Penalty only, with no demand of tax | ₹40 crore total: ₹20 crore CGST and ₹20 crore SGST/UTGST |
The release refers to the two forums and provisions respectively. It does not clarify whether the stated allocation is a separate ceiling at each appeal stage or a cumulative limit across stages, so the figures should not be read as settling that question.
Is the cap already in force?
The official Press Information Bureau release on the 57th GST Council meeting, published on 8 October 2026, describes this as a Council recommendation. It does not establish enactment, a commencement date, or retroactive application. Before relying on the proposed limit for an appeal, check whether a subsequent amendment and commencement notification have been issued.
The release also does not explain how appeals already filed would be treated or provide implementation guidance. The recommendation alone therefore does not answer whether an existing case qualifies under any later change.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the Council recommended the change
The Council’s stated rationale is that the measure “will ease the financial burden on taxpayers and make it easier for them to access appellate remedies in such cases.” The release provides no impact study or quantified estimate of savings, so that rationale should be understood as the Council’s stated purpose rather than a measured outcome.
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