The Goods and Services Tax (GST) on April 03, 2026, issued the notification regarding the Difficulty in filing appeals on the GST portal in cases where adjudication orders reflect "NIL" demand due to prior voluntary payment.
The following has been stated namely: -
• Some taxpayers faced difficulty filing appeals when demand orders show “NIL” liability on the GST portal, despite disputes over tax liability.
• This occurs when taxpayers make payments during the Show Cause Notice (SCN) stage without admitting liability, but the adjudicating authority issues a demand order treating it as fully settled.
• The GST portal records zero demand in the Demand and Collection Register (DCR), which blocks appeal filing (APL-01) with errors like “Disputed amount cannot be more than demand amount.”
• Payment during SCN stage does not mean acceptance of liability, and taxpayers still have the right to appeal under Section 107 of the CGST Act, 2017.
• Taxpayers should request a rectification order from the adjudicating authority via the GST portal, once the correct demand is reflected, they can file an appeal within the prescribed timeline.
