GST appeal pre-deposit: CBIC clarifies calculation and refund
What changed. To file a GST appeal, a taxpayer pays the admitted amount in full plus 10% of the tax in dispute (sections 107(6) and 112(8) of the CGST Act). CBIC has clarified:
- Admitted amount is the part of the order the taxpayer accepts and does not challenge. Tax in dispute is the rest. The taxpayer makes this choice when filing, in Table 14 of APL-01 or Table 20 of APL-05.
- Before the Tribunal, the 10% is computed on the liability confirmed by the Appellate Authority that is still disputed. It is in addition to the amount paid at the first appeal.
- Refund after a win does not need the order to say "refund the pre-deposit". The claim is filed in FORM GST RFD-01 under "on account of order".
- Department appeal: refund cannot be denied only because the department intends to appeal or has appealed, unless the order is stayed.
- Interest under section 115 runs separately from the actual date of each pre-deposit.
- Remand: on full remand the pre-deposit is refundable. On partial remand, the amount for the confirmed demand, with interest, is adjusted first.
Who it affects. Businesses that have filed, or plan to file, GST appeals.
From when. The circular is dated 26 October 2026.
What to do. - Decide carefully how much of an order to admit before filing APL-01 or APL-05. - After a favourable order, file the refund in RFD-01 and cite this circular if the refund is withheld only because of a proposed departmental appeal.
Official source: CBIC Circular No. 259/05/2026-GST dated 26 October 2026
This is general information based on the law as on the date shown, not professional advice. Rules change often; check the current position before acting.