Indirect Tax Laws (GST & Customs)MCQQuestion 5846 of 504
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What is the mandatory statutory pre-deposit required under Section 107(6) of the CGST Act, 2017 for filing an appeal before the First Appellate Authority against an adjudication order confirming tax and penalty?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Full amount of admitted tax and 10% of disputed tax, subject to a maximum of ₹25 crores (CGST)

All Options:

  • AFull amount of admitted tax and 10% of disputed tax, subject to a maximum of ₹25 crores (CGST) ✓
  • B10% of total tax demand including admitted and disputed tax and penalties
  • C20% of disputed tax, subject to a maximum of ₹50 crores
  • DFull amount of admitted tax, interest, fine, and 25% of disputed tax

Detailed Solution & Explanation

Statutory provisions of Section 107(6) of the CGST Act, 2017:
1. **Admitted Dues**: The appellant must deposit in full the tax, interest, fine, fee and penalty arising from the impugned order as is admitted by him.
2. **Disputed Dues**: The appellant must deposit **10% of the remaining amount of tax in dispute** (penalties and interest in dispute are not subject to pre-deposit at this stage).
3. **Monetary Cap**: The pre-deposit of 10% of disputed tax is capped at **₹25 crore** under CGST (and an equivalent ₹25 crore under SGST, or ₹50 crore under IGST).
Hence, **Option A** is the correct answer.

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