GST WEEKLY UPDATE :51/2025-26 (22.03.2026) By CA Vipul Khandhar

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By CA Vipul Khandhar

1.    Advisory Regarding Confirmation of “Tax Liability Breakup, As Applicable” in GSTR-3B:

In continuation of ongoing enhancements to the GST return filing process, taxpayers are advised to take note of the following important update concerning the confirmation of the “Tax Liability Breakup, As Applicable” in Form GSTR-3B:

1. Legal Provision

As per the provisions of Section 50 of the Central Goods and Services Tax (CGST) Act, 2017, interest is payable in cases where tax liability pertaining to a previous tax period is discharged in a subsequent tax period.

Accordingly, the tab “Tax Liability Breakup, As Applicable” in Form GSTR-3B is intended to capture such liabilities relating to earlier tax periods that are being reported and discharged in the current tax period.

2. System Enhancement (Effective February 2026)

From the February 2026 tax period onwards, the GST Portal auto-populates the “Tax Liability Breakup, As Applicable” based on the document dates of supplies reported in:

• GSTR-1
• GSTR-1A
• Invoice Furnishing Facility (IFF)

This auto-population applies where supplies relate to previous tax periods but the corresponding liability is discharged in the current GSTR-3B.

3. Mandatory Confirmation Requirement

Post offsetting the tax liability in GSTR-3B, taxpayers are required to:

• Navigate to the “Tax Liability Breakup, As Applicable” tab on the payment page
• Review the auto-populated details
• Click “SAVE” to confirm the breakup
• Alternatively, edit the details if required before saving

4. Filing Dependency

Once the breakup is confirmed and saved, taxpayers will be able to proceed with filing Form GSTR-3B using:

• Electronic Verification Code (EVC), or
• Digital Signature Certificate (DSC)

5. Feedback from Stakeholders

It has been represented by taxpayers that such confirmation should be mandatory only in cases involving prior-period supplies reported in the current tax period.

However, at present, the system requires confirmation in all cases, including those where liability pertains solely to the current period.

This concern has been acknowledged by GSTN and is currently under review.

6. Interim Guidance

Until the issue is resolved, taxpayers are advised to follow the interim procedure below:

• Open the “Tax Liability Breakup, As Applicable” tab on the payment page
• Click “SAVE”, irrespective of applicability
• Proceed with filing GSTR-3B as usual

Conclusion

Taxpayers are requested to adhere to the above interim compliance requirement to ensure smooth filing of returns during the current phase of system updates. Further clarifications or updates will be issued once the matter is resolved on the GST portal.

2. Notification on Appeal Timelines under the Goa GST Act, 2017: A Step Towards Procedural Clarity and Tribunal Operationalization:

Abstract
The Government of Goa, through its Department of Finance (Revenue & Control Division), has issued Notification No. 38/1/2017-Fin(R&C)/31169 dated March 10, 2026, prescribing specific timelines for filing appeals before the GST Appellate Tribunal. This notification represents a significant procedural development aimed at addressing backlog cases, streamlining appellate processes, and ensuring consistency in the application of statutory timelines under the Goa Goods and Services Tax Act, 2017.

Key Features of the Notification

The notification lays down a bifurcated framework for determining the limitation period for filing appeals before the GST Appellate Tribunal:

1.1 Cases Where Orders Are Communicated On or Before April 1, 2026

For such cases, the notification specifies June 30, 2026 as the last date for filing appeals. This effectively creates a one-time extended window for taxpayers to file appeals in respect of pending or backlog cases.

2.2 Cases Where Orders Are Communicated On or After April 1, 2026
In these cases, the standard limitation period under Section 112 of the Goa GST Act, 2017 applies. Accordingly, appeals must be filed within three months from the date of communication of the order, with the possibility of extension subject to statutory provisions.

3. Legal Basis and Rationale

The notification has been issued on the recommendations of the GST Council, reflecting a coordinated approach toward harmonizing procedural aspects across jurisdictions. The legal foundation lies in the powers conferred under the Goa GST Act, enabling the government to prescribe timelines in the context of tribunal functionality.

The rationale behind the notification can be summarized as follows:

• Addressing Transitional Gaps: The delay in constituting the GST Appellate Tribunal had created ambiguity regarding limitation periods. The notification resolves this by providing a clear filing window.
• Facilitating Tribunal Operationalization: By setting a definitive deadline, the government aims to ensure a smooth transition as the Tribunal becomes fully functional.
• Reducing Litigation: Clear timelines reduce disputes relating to limitation, thereby minimizing procedural litigation.
• Ensuring Uniformity: A standardized approach to appeal timelines promotes consistency and fairness across taxpayers.

4. Practical Implications for Taxpayers

4.1 Opportunity to File Backlog Appeals
Taxpayers who were unable to file appeals due to the absence or non-functionality of the Tribunal now have a final opportunity to do so by June 30, 2026.

4.2 Need for Immediate Action
Given the limited window, taxpayers must promptly review all eligible orders communicated on or before April 1, 2026, and initiate the appeal process without delay.

4.3 Compliance with Standard Limitation Periods Going Forward

For future cases, strict adherence to the three-month limitation period under Section 112 is required. Taxpayers must establish robust internal mechanisms to track order communications and ensure timely filing.

4.4 Documentation and Preparedness
Preparation of appeal documentation, including grounds of appeal, supporting evidence, and compliance with procedural requirements, must be prioritized to avoid last-minute complications.

5. Impact on Tax Administration

From an administrative perspective, the notification is expected to:

• Streamline Case Flow: A defined deadline will help authorities manage the inflow of appeals efficiently.
• Enhance Certainty: Clear timelines reduce interpretational disputes, allowing tax authorities to focus on substantive issues.

Support Tribunal Efficiency: By consolidating backlog cases within a fixed timeframe, the Tribunal can function more effectively once operational.

3. Operationalization of the GST Appellate Tribunal, Rajkot Bench: Strengthening Regional Access to GST Justice:
4. Institutional Framework and Location

The newly operational GSTAT Rajkot State Bench is situated at: 201–208, Tower-A, RK Iconic, 150 Feet Ring Road, near Sheetal Park, Puneet Nagar, Rajkot – 360006, Gujarat.

Its strategic location enhances accessibility for taxpayers, professionals, and departmental authorities across Gujarat, particularly those in the Saurashtra and Kutch regions, who previously faced logistical challenges in pursuing appellate remedies. 

3. Key Features of the Rajkot GSTAT Bench

3.1 Commencement of Tribunal Operations

As notified through Trade Notice No. 01/2026, the Rajkot Bench is now fully functional and equipped to hear appeals. This ensures that taxpayers can now pursue second-stage appeals without procedural uncertainty.

3.2 E-Filing of Appeals

A dedicated GSTAT portal has been launched, enabling electronic filing of appeals. This aligns with the broader digital governance framework and reduces reliance on physical documentation.

Appeals can be filed against:

• Orders passed by the First Appellate Authority under Section 107, and
• Orders issued by the Revisional Authority under Section 108 of the GST Act.

3.3 User Support Infrastructure

To ensure smooth adoption of the digital platform, the following support systems have been introduced:

• A toll-free helpline (1800-103-4782) for immediate assistance
• An online grievance redressal mechanism to address technical and procedural issues

4. Legal and Procedural Significance

The operationalization of the GSTAT Rajkot Bench carries important legal implications:

• Completion of Appellate Chain: It activates the second appellate tier envisioned under the GST framework, ensuring that disputes can progress beyond the first appellate authority.
• Reduction of Limitation Ambiguities: With the Tribunal now functional, statutory timelines for filing appeals under Section 112 gain practical enforceability.
• Enhanced Judicial Oversight: The Tribunal provides an independent forum for adjudication, reinforcing principles of natural justice and legal consistency. 

5. Impact on Taxpayers and Practitioners

5.1 Improved Access to Justice

Taxpayers in Gujarat, especially in Saurashtra and Kutch, benefit from proximity to the Tribunal, reducing travel time and associated costs.

5.2 Expedited Dispute Resolution

The availability of a functional appellate body is expected to significantly reduce pendency and accelerate the resolution of disputes.

5.3 Digital Convenience

The e-filing system simplifies procedural compliance, enabling stakeholders to file appeals, track case status, and manage documentation online.

5.4 Increased Compliance Discipline

With a fully operational appellate mechanism, taxpayers are likely to adopt more structured compliance practices, knowing that disputes can be adjudicated efficiently.

6. Administrative and Economic Implications

From a governance perspective, the Rajkot Bench contributes to:

• Decentralization of Judicial Functions: Reducing the burden on other benches and promoting regional adjudication.
• Ease of Doing Business: By ensuring timely dispute resolution, the initiative enhances investor confidence and business predictability.
• Institutional Strengthening: It reflects a maturing GST ecosystem with robust dispute resolution infrastructure.

7. Challenges and Way Forward

While the operationalization is a welcome step, certain challenges may arise:

• Initial Technical Glitches: As with any new digital platform, teething issues in the e-filing system may occur.
• Capacity Building: Adequate training for stakeholders, including tax professionals and departmental officers, is essential.

Consistency in Jurisprudence: Ensuring uniformity in decisions across benches will be critical for legal certainty.

4. Standardization of Appeal Scrutiny under GSTAT: An Analysis of the 2026 Procedural Instructions:

The Goods and Services Tax Appellate Tribunal (GSTAT), vide F. No. GSTAT/Pr. Bench/Portal/125 /2025-26/3868 dated March 10, 2026, has issued comprehensive instructions governing the scrutiny of appeals filed through the GSTAT portal.

1. Mandatory Documentation Requirements

2.1 Appeals in Form APL-05

The instructions mandate that every appeal filed in Form APL-05 must be accompanied by soft copies of essential documents, including:

• Show Cause Notice (SCN)
• Order-in-Original (OIO)
• Order-in-Appeal (OIA)
• Statement of Facts
• Grounds of Appeal

This requirement ensures that scrutiny officers have access to a complete factual and legal record at the initial stage, thereby reducing back-and-forth communication and procedural delays.

3. Financial Compliance: Pre-Deposit and Court Fees

A key clarification pertains to the mandatory nature of pre-deposit and court fees in appeals:

• Appeals lacking proof of payment are liable to be flagged during scrutiny.
• However, where a competent higher court has granted exemption, scrutiny officers are expressly directed not to raise defect memos on this ground.

This strikes a balance between procedural compliance and respect for judicial orders.

4. Certified Copies and Evidentiary Acceptance

The instructions provide pragmatic guidance regarding document authentication:

• If the appellant uploads scanned certified copies of the OIO or OIA,
• And such copies bear endorsement by the issuing authority confirming certification,
• Then scrutiny officers are instructed not to raise defects on authenticity grounds.

This clarification is significant in a digital environment, where reliance on scanned documents is inevitable, and it reduces unnecessary procedural objections.

5. Representation and Authorization Requirements

To ensure proper representation before the Tribunal:

• Appellants must upload authorization in favour of a tax professional, or
• A vakalatnama in the name of an advocate, where applicable.

This requirement reinforces accountability and ensures that only duly authorized representatives act on behalf of parties.

6. Departmental Appeals under Section 112(3)

The instructions also delineate requirements for appeals filed by the Revenue Department:

6.1 Mandatory Documents

Departmental applications must include:

• Show Cause Notice
• Order-in-Original
• Order-in-Appeal
• Statement of Facts
• Grounds of Appeal
• Opinion of the Commissioner authorizing the filing of appeal

6.2 Exemption from Financial Requirements

Importantly, such appeals are exempt from payment of court fees and pre-deposit, recognizing the distinct nature of departmental proceedings.

7. Digital Verification and Authentication

The Tribunal has emphasized the necessity of:

• Single verification by the appellant, and
• Digital signature authentication at the time of filing.

This ensures legal validity, data integrity, and non-repudiation of electronically filed appeals.

8. Administrative and Legal Significance

The issuance of these instructions carries multiple implications:

• Reduction in Procedural Defects: Clear guidelines minimize inconsistencies in scrutiny practices.
• Enhanced Efficiency: Complete and standardized filings facilitate quicker processing.
• Legal Certainty: Uniform documentation norms reduce interpretational disputes.
• Digital Adaptation: The instructions align procedural law with technological advancements in e-governance.

9. Practical Considerations for Stakeholders

For Taxpayers and Professionals:

• Ensure completeness of documentation at the time of filing.
• Verify compliance with financial requirements or attach exemption orders where applicable.
• Maintain properly certified copies of key orders.

For Scrutiny Officers:

• Adhere strictly to the instructions to avoid arbitrary defect flags.

Exercise due diligence while accepting certified scanned documents.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.