Circular 259: GST Appeal Pre-Deposit, Admitted Amount and Refund Clarified
CBIC Circular 259/05/2026-GST explains pre-deposit for GST appeals: admitted amount, 10% of disputed tax, refunds, interest and remand cases.
Key takeaways: gst appeal pre-deposit
- GST appeal pre-deposit is the full admitted amount plus 10% of the tax in dispute.
- Refund is claimed in FORM GST RFD-01 under S. No. 7, and cannot be denied merely because the department may appeal.
- Interest on the refund runs from the date of each payment, separately for each level.
Table of contents
CBIC’s Circular No. 259/05/2026-GST, dated 26 October 2026, clarifies several issues on the pre-deposit payable to file an appeal under section 107(6) (Appellate Authority) or section 112(8) (Appellate Tribunal) of the CGST Act. It is issued under section 168(1).
1. What is the pre-deposit?
To appeal to the Appellate Authority, the appellant must pay the full admitted amount of tax, interest, fine, fee and penalty, plus 10% of the tax in dispute. For the Appellate Tribunal, the same applies in addition to the amount already paid for the first appeal.
- The admitted amount is the part of the liability in the order that the taxpayer accepts and does not intend to appeal. It must be paid in full before filing.
- The remainder that is contested is the tax in dispute; 10% of it is the pre-deposit.
- The taxpayer decides what is admitted and what is disputed when filing, and records it in Table 14 of FORM GST APL-01 and Table 20 of APL-05.
2. Tribunal pre-deposit after the Appellate Authority modifies the order
The pre-deposit is 10% of the remaining disputed tax, calculated on the liability confirmed by the Appellate Authority that the appellant still disputes.
3. Do orders have to say the pre-deposit is refundable?
No. An order does not need to state it expressly. After receiving the order, the refund claim is filed under S. No. 7 of FORM GST RFD-01 (“on account of order”).
4. Refund when the department may appeal
If the appellant wins, the pre-deposit refund is payable even if the department intends to appeal or has appealed, unless the Tribunal or a Court stays the order. A refund cannot be denied merely because the department intends to appeal.
5. Interest on pre-deposit refunds
Under section 115, interest is payable from the date of payment. Where pre-deposits are made at both levels, the payment date for interest is determined separately for each level, based on the actual date of each payment.
6. Refund after remand
- Full remand to the original adjudicating authority: the appellant is eligible for refund of the pre-deposit within the prescribed time limit.
- Partial remand, where part of the demand is upheld: the refund is released only after the upheld demand, with applicable interest, is recovered or adjusted against the pre-deposit. The balance is then refunded.
Related: Circular 258 on notices, adjudication and appeals and how to reply to a GST notice. For help with a GST notice or appeal, see our notice reply service.
What to do next about gst appeal pre-deposit
Review how gst appeal pre-deposit affects your business: note the effective date, check your records and software, brief your team and keep a copy of the official text on file. Where the position is unclear for your case, take professional advice before filing or changing your process.
Official sources for gst appeal pre-deposit
Always read the original text. You can find notifications, circulars and rules on the CBIC Tax Information Portal and file returns and applications on the GST Portal. This guide on gst appeal pre-deposit is a summary and is not a substitute for the official text.
Frequently asked questions
How much pre-deposit is needed for a first appeal?
The full admitted amount plus 10% of the tax in dispute.
Can a refund be refused because the department may appeal?
No, unless the Tribunal or a Court stays the favourable order.
Where do you claim the refund of pre-deposit?
In FORM GST RFD-01, under S. No. 7 (on account of order).
This article is for general information only and is not tax, legal or financial advice. It is based on the text of the notification or circular as published by CBIC. Rules, rates and criteria change, so confirm the latest position with the official source or a professional before acting.
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