Circular 259/05/2026-GST: Pre-Deposit for GST Appeals & Refund

GST 29 October 2026 Official PDF

Circular 259/05/2026-GST pre-deposit GST appeal Section 107(6) Section 112(8) admitted amount tax in dispute APL-01 APL-05 GSTAT refund of pre-deposit RFD-01 Section 115 interest remand

Summary

CBIC Circular 259/05/2026-GST dated 26 October 2026 clarifies the pre-deposit for GST appeals under Sections 107(6) and 112(8). It explains “admitted amount” and “tax in dispute”, how the Tribunal pre-deposit is worked out after the first appeal, how to claim the refund, interest from each payment date, and that the refund cannot be held back only because the department plans to appeal.

The CBIC has issued Circular No. 259/05/2026-GST dated 26.10.2026 under Section 168(1) of the CGST Act. It answers six questions on the pre-deposit required for filing an appeal before the Appellate Authority (Section 107(6)) and the GST Appellate Tribunal (Section 112(8)), and on its refund. The Board notes that different interpretations by field offices had caused confusion and litigation.

1. “Admitted Amount” and “Tax in Dispute”

Before filing an appeal, you must pay:

the admitted amount in full: the part of tax, interest, fine, fee and penalty arising from the order that you accept and do not challenge; and
10% of the tax in dispute: the part of the tax you are challenging. This 10% is the “pre-deposit”.

The pre-deposit is worked out on the disputed tax, subject to the maximum limits in the Act. You decide which part is admitted and which is in dispute at the time of filing the appeal. This is shown in Table 14 of APL-01 (first appeal) and Table 20 of APL-05 (Tribunal).

Example (illustrative)

Order	Amount
Tax demanded	₹10,00,000
You accept tax of ₹2,00,000 and its interest of ₹40,000 — paid in full	₹2,40,000
Tax in dispute ₹8,00,000 — pre-deposit at 10%	₹80,000
Total to be paid before filing the first appeal	₹3,20,000

2. Pre-Deposit for the Tribunal When the First Appeal Changes the Demand

For an appeal before the Tribunal, the 10% is worked out on the tax confirmed by the Appellate Authority that you still dispute. It is payable in addition to the amount already paid for the first appeal.

Continuing the example: if the Appellate Authority reduces the disputed tax from ₹8,00,000 to ₹5,00,000 and you appeal against all of it, the Tribunal pre-deposit is 10% of ₹5,00,000 = ₹50,000, over and above the ₹80,000 already paid.

3. The Order Need Not Say “Refund the Pre-Deposit”

Where the appeal order makes the pre-deposit refundable, the order does not need to say so expressly. On receiving the order, file the refund claim in FORM GST RFD-01 under category S. No. 7 — “On account of order”.

4. Refund Cannot Be Held Back Because the Department May Appeal

If you win before the Appellate Authority or the Tribunal and apply for refund, you are entitled to it. Even if the department intends to appeal, or has appealed, the refund is still payable unless the order is stayed by the Tribunal or a Court. Refund should not be denied merely because the department plans to appeal.

5. Interest on Refund — Date of Payment at Each Level

Pre-deposit is paid separately at each level. Under Section 115, interest on the refund runs from the date of payment. Where pre-deposit was paid at both levels, the date of payment for interest is taken separately for each level, from the actual date each amount was paid.

6. Refund When the Tribunal Remands the Matter

Full remand to the adjudicating authority: the pre-deposit is refundable within the prescribed time.
Partial remand (part of the demand upheld): the demand confirmed, with interest, is first recovered or adjusted from the pre-deposit. Only the balance is refunded.

Practical Checklist

Before filing APL-01, decide carefully what you admit and what you dispute. Pay the admitted amount in full and 10% of the disputed tax.
Fill Table 14 of APL-01 (or Table 20 of APL-05) correctly. The pre-deposit field in APL-01 can now be edited.
Keep the payment challans or DRC-03 / ledger entries with dates for each level. They decide the interest on refund.
After a favourable order, file RFD-01 under “On account of order”, even if the order is silent on refund.
If the refund is withheld only because the department plans to appeal, refer to point 4 of this circular.

Reference: Circular No. 259/05/2026-GST dated 26.10.2026, CBIC. The example is for illustration only. This page is for general information only.

Official CBIC circular

Circular No. 259/05/2026-GST

CBIC · Dated 26.10.2026 · 5 pages

View circular

Frequently Asked Questions

What is the “admitted amount” and “tax in dispute” for a GST appeal?

The admitted amount is the part of tax, interest, fine, fee and penalty in the order that the taxpayer accepts and does not challenge; it must be paid in full. The tax in dispute is the tax being challenged, and 10% of it is the pre-deposit. The taxpayer decides this split while filing, in Table 14 of APL-01 or Table 20 of APL-05.

How is the Tribunal pre-deposit calculated if the first appeal reduces the demand?

As per Circular 259/05/2026-GST, the 10% for the Tribunal is calculated on the tax confirmed by the Appellate Authority that the appellant still disputes. It is payable in addition to the amount already paid for the first appeal.

Does the appeal order have to say that the pre-deposit will be refunded?

No. The order need not mention refund of the pre-deposit. After receiving the order, the taxpayer should file the refund claim in FORM GST RFD-01 under S. No. 7, “On account of order”.

Can the refund of pre-deposit be withheld because the department will appeal?

No. If the taxpayer wins and applies for refund, the pre-deposit is refundable even if the department intends to appeal or has appealed, unless the order is stayed by the Tribunal or a Court.

From which date is interest paid on refund of pre-deposit?

Under Section 115, interest runs from the date of payment. Where pre-deposit was paid for both the first appeal and the Tribunal appeal, the date is taken separately for each level, from the actual date each amount was paid.

Is the pre-deposit refunded if the Tribunal remands the case?

In a full remand to the adjudicating authority, the pre-deposit is refundable within the prescribed time. In a partial remand, the demand upheld, with interest, is first recovered or adjusted from the pre-deposit, and only the balance is refunded.

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Circular No. 259/05/2026-GST: CBIC Clarifies Pre-Deposit for GST Appeals and Its Refund