In the past, taxpayers had very little control over the pre-deposit amount when submitting an appeal in Form APL-01 on the GST system. There were occasionally practical issues because the algorithm automatically determined a predetermined percentage.
Problem: An explanation in plain language
Before submitting an appeal, a taxpayer must deposit 10% of the contested tax amount in accordance with Section 107(6) of the CGST Act, 2017. The system automatically filled up this 10% pre-deposit on the GST portal; the taxpayer was unable to change it.
In many instances, this led to issues. For instance: The taxpayer was unable to modify the pre-deposit in the system if they had already paid it in another way. Occasionally, the demand amount was displayed under the incorrect tax head (such as CGST, SGST, or IGST), which caused the 10% amount to be calculated incorrectly. Because the field was not editable, taxpayers had to pay more or deal with problems while filing the appeal.
GSTN has released a significant upgrade to address these problems.
Solution: New Update (Starting on April 6, 2026)
As of April 6, 2026, taxpayers can modify the pre-deposit amount while submitting an appeal on Form APL-01 using the GST portal.
This implies: The 10% pre-deposit amount can now be adjusted according to your specific situation. You can make adjustments if you have already paid a certain sum. Errors where the demand amount was incorrectly reflected can be fixed.
The taxpayer can calculate and pay the proper amount when submitting the appeal after making the required adjustments.
Crucial Point
This does not imply that any quantity can be input freely, even though the field is now editable. The Appellate Authority will verify: Whether the right amount has been paid for the pre-deposit The validity of the payment method Whether the computation complies with the law
Any disparity discovered could have an impact on the appeal procedure.
Conclusion:
This update by GSTN is a really beneficial move. It lowers needless mistakes and additional costs while providing taxpayers with flexibility and control when filing appeals. To prevent problems during verification, taxpayers should nevertheless exercise caution and make sure the right pre-deposit amount is determined and paid in accordance with the law.
