- Taxpayers contesting penalty-only assessments under the Goods and Services Tax (GST) are waiting for the Central Board of Indirect Taxes and Customs (CBIC) to formally implement a proposed reduction in the mandatory pre-deposit requirement for first appeals, recommended by the GST Council.
- During its 55th meeting on December 21, 2024, the GST Council proposed reducing the pre-deposit from 25% to 10% of the penalty amount to ease the financial burden on taxpayers appealing cases without associated tax demands, but as of April 29, 2025, the CBIC has yet to issue the necessary notification.
- Although the CBIC has made other changes, such as reducing pre-deposit requirements for disputed tax amounts to 10% effective November 1, 2024, these changes do not apply to penalty-only appeals, leaving taxpayers in a state of uncertainty and awaiting the formalization of the amendment.
Source Jurishour.in
