This circular provides guidelines to reduce government litigation by prescribing monetary limits for filing appeals by the Department before the Goods and Services Tax Appellate Tribunal (GSTAT), High Courts, and the Supreme Court.

In accordance with Section 120 of the CGST Act, the monetary thresholds are fixed as ₹20 lakh for GSTAT, ₹1 crore for High Courts, and ₹2 crore for the Supreme Court. Appeals below these limits shall not be filed unless the case involves significant legal or constitutional issues, such as matters declared ultra vires, valuation or classification disputes, recurring legal interpretations, or adverse remarks against the Department.

The circular emphasizes that appeals should not be filed merely because the tax amount exceeds the threshold; they must be based on legal merit. Non-filing of appeals due to monetary limits will not establish a precedent or indicate acceptance of the lower authority’s decision. Departmental officers are instructed to record reasons for non-filing and inform appellate bodies that decisions not appealed were excluded solely due to monetary thresholds.