Delhi High Court blocks 10% pre‑deposit for GST penalty appeals

The Delhi High Court ruled that the 10% pre‑deposit condition introduced on 1 October 2025 for penalty‑only GST appeals does not apply to proceedings that began with a show‑cause notice issued before that date. The court held that the right of appeal is fixed at the time the dispute starts, allowing petitioners Gaurav Jain and another individual, who had received a notice on 25 June 2025, to file appeals without depositing the required amount and granting them four weeks to do so while halting coercive recovery.

GST notices are increasingly common as the tax department cross‑checks returns, e‑invoices and income‑tax records. Taxpayers are advised to read notices carefully, verify records such as GSTR‑1, GSTR‑3B, invoices and bank statements, and submit a factual, point‑wise reply supported by relevant provisions of the CGST Act (including Sections 61, 65, 70, 73, 74). Timely electronic filing through the GST portal and preserving acknowledgements are essential to avoid penalties.