How to Withdraw a GST Appeal: APL-01W Process Under Rule 109C Explained

A taxpayer who has filed a first appeal before the GST Appellate Authority in Form APL-01 can withdraw it at any point before the Appellate Authority issues a Show Cause Notice or passes an order under Section 107(11) whichever is earlier. The withdrawal is filed using Form APL-01W, introduced through Rule 109C of the CGST Rules. This guide covers when withdrawal makes sense, exactly how to do it on the GST portal, what happens to your pre-deposit, and the one scenario where you cannot withdraw.

When and Why a Taxpayer Withdraws a GST Appeal

Withdrawing a GST appeal is not a concession of defeat. It is a tactical decision made in specific circumstances. The most common reasons are:

• Settlement or resolution reached: The dispute is resolved informally with the department, or the demand is found to be acceptable after re-evaluation, making continuation of the appeal unnecessary.
• Availing the Section 128A waiver scheme: The GST amnesty scheme under Section 128A requires that no appeal be pending against the demand order for which a waiver application is filed. Withdrawal of the appeal is a precondition. Although the primary Section 128A deadline has passed (June 30, 2025), taxpayers with reclassification cases under Section 75(2) may still have a live window.
• Revised order issued: The adjudicating authority issues a rectification order that substantially reduces the demand, making the original appeal basis redundant.
• Strategic re-filing: A taxpayer may withdraw to restructure their grounds of appeal and re-file within the permissible limitation period under Section 107. Withdrawal and re-filing is permitted a new ARN is generated on the same Order ID.
• Availing an alternative remedy: The taxpayer chooses to move directly to the GST Appellate Tribunal (GSTAT) or High Court on a question of law, where the first appeal is not a mandatory prior step.

Legal Basis: Rule 109C of the CGST Rules

The right to withdraw a GST appeal is governed by Rule 109C of the Central Goods and Services Tax Rules, 2017, which was inserted to provide a formal mechanism for appeal withdrawal. Key provisions:

• Timing: An application for withdrawal may be filed at any time before the issuance of a Show Cause Notice or the passing of an order under Section 107(11), whichever is earlier. Once a Show Cause Notice has been issued in the appeal proceedings, withdrawal is no longer available.
• Form: The withdrawal application is filed in Form GST APL-01W (for appeals filed in APL-01) or Form GST APL-03W (for applications filed in APL-03 by the department).
• Post-APL-02 approval requirement: Where the final acknowledgment in Form APL-02 has already been issued meaning the appeal has been formally admitted, withdrawal requires the approval of the Appellate Authority. The authority must decide on the withdrawal application within 7 days of receiving it.
• Limit on withdrawals: An appeal application can be withdrawn a maximum of two times. After two withdrawals, no further withdrawal is permitted.
• Re-filing: After withdrawal, the taxpayer may re-file an appeal against the same order within the time limits prescribed under Section 107. The Order ID remains the same; a new ARN is generated.

Important: CBIC Circular 250/07/2025-GST dated June 24, 2025 clarified that the Principal Commissioner or Commissioner of Central Tax acts as the Reviewing Authority under Section 107 for orders passed by Common Adjudicating Authorities. This is relevant when determining the correct Appellate Authority for withdrawal applications in multi-jurisdictional demand cases.

Two Scenarios: Before and After APL-02 Admission

The withdrawal process and its outcome differ depending on whether the appeal has received its final acknowledgment (APL-02) or not.

Scenario 1: Withdrawal Before APL-02 Is Issued (Auto-Approved)

If the withdrawal application is submitted before the Appellate Authority issues the final acknowledgment in Form APL-02, the withdrawal is automatically approved by the system. No officer intervention is required. The appeal status updates from “Appeal submitted” to “Appeal withdrawn” without any manual approval step. This is the faster and cleaner route.

Scenario 2: Withdrawal After APL-02 Is Issued (Appellate Authority Approval Required)

If APL-02 has already been issued, meaning the appeal has been formally admitted and is under active consideration the Appellate Authority must review and approve the withdrawal request. The authority has 7 days from the date of filing the withdrawal application to either approve or reject it.

There are two sub-cases here:

• If no Show Cause Notice has been issued in the appeal: The Appellate Authority can approve or reject the withdrawal application.
• If a Show Cause Notice has already been issued in the appeal: The Appellate Authority cannot approve the withdrawal. The withdrawal application will be rejected. The appeal must continue to its conclusion before the authority.

How to Withdraw a GST Appeal on the Portal:  Step by Step

1. Log into the GST portal at gst.gov.in using your GSTIN credentials.
2. Navigate to your appeal: Go to Services → User Services → My Applications. Select Appeal to Appellate Authority from the Application Type dropdown. Set the relevant date range and click SEARCH.
3. Open the appeal you wish to withdraw: Click on the ARN hyperlink of the relevant appeal in the search results to open the Case Details page.
4. Access the Withdrawal tab: On the Case Details page, navigate to the Withdrawal Application tab. Click APPLY FOR WITHDRAWAL and select Application for Withdrawal.
5. Select reason for withdrawal: Choose the appropriate reason from the dropdown. Multiple reasons can be added. Upload supporting documents if applicable (maximum file size: 5 MB).
6. Enter declaration details and click PREVIEW to review the application before submission.
7. Sign and submit using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code). A success message is displayed on submission.
8. Confirm status update: If the withdrawal is pre-APL-02, the status updates automatically to “Appeal withdrawn.” If post-APL-02, monitor the application for the Appellate Authority’s decision within 7 days.

What Happens After the GST Appeal Is Withdrawn

Pre-Deposit Adjustment

When filing a GST appeal, the taxpayer is required to make a pre-deposit of 10% of the disputed tax amount under Section 107(6). When the appeal is withdrawn, this pre-deposited amount is adjusted against the taxpayer’s outstanding tax liability. It is not refunded. Any remaining demand amount after pre-deposit adjustment must be paid separately by the taxpayer.

Re-Filing the Appeal

After withdrawal, a fresh appeal can be filed against the same order, provided it is within the time limit under Section 107 (3 months from the date of communication of the order, extendable by 1 month at the Appellate Authority’s discretion for sufficient cause). The Order ID remains unchanged; a new ARN is generated for the fresh appeal. Note that an appeal can only be withdrawn twice a third withdrawal attempt is not permitted.

Section 128A Waiver Applications

For taxpayers withdrawing an appeal specifically to avail the GST waiver scheme under Section 128A, the withdrawal must be confirmed and the status updated to “Appeal withdrawn” on the portal before the waiver application (SPL-01/SPL-02) is filed. The GSTN advisory of May 14, 2025 requires that a screenshot of the appeal case folder showing status as “Appeal withdrawn” be uploaded along with the waiver application. While the primary June 30, 2025 deadline for the Section 128A scheme has passed, taxpayers with reclassification orders issued under Section 75(2) may still have a live filing window of 6 months from the date of that order.

Appeals Filed Before March 21, 2023: The Manual Route

The online portal withdrawal option described above is available for appeals filed on or after March 21, 2023. For appeals filed before this date, the portal does not provide a self-service withdrawal option.

In these cases, the process is manual:

1. The taxpayer submits a written application for withdrawal to the concerned Appellate Authority in whose jurisdiction the appeal was filed.
2. The Appellate Authority forwards the withdrawal request to GSTN through the State Nodal Officer for backend processing.
3. Once processed, the portal status is updated to reflect the withdrawal.

This route requires active follow-up with the Appellate Authority to ensure the request is processed and the portal status is updated in time particularly where the withdrawal is a precondition for another filing (such as a Section 128A waiver application).

How MBG Assists with GST Appeal Withdrawals and Dispute Resolution

Withdrawing a GST appeal involves more than a portal transaction; it requires evaluating the strategic implications for your outstanding demand, pre-deposit position, re-filing options, and any connected compliance obligations. A poorly timed or incorrectly executed withdrawal can foreclose remedies that would otherwise be available.

MBG’s Indirect Tax Advisory team supports businesses across India with the following:

• GST Litigation and Appeal Management: End-to-end representation before Appellate Authorities, including APL-01 drafting, hearing representation, and strategic advice on withdrawal and re-filing.
• GST Advisory and Compliance: Pre-dispute advisory on demand notices, ITC positions, and classification disputes before they escalate to adjudication.
• GST Audit Assistance: Representation during department audits, including officer correspondence and documentation management.
• GST Health Check: Proactive review of your GST positions to identify and remediate exposure before demands are raised.

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Email: communications@mbgcorp.com