1. Title of the Document
| Document Title | Clarification on various issues pertaining to the amount paid as pre-deposit as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act |
| Document Number | Circular No. 259/05/2026-GST (F. No. CBIC-20001/2/2026-GST) |
| Issuing Authority | Central Board of Indirect Taxes & Customs (CBIC), GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India |
| Date of Document | 26.10.2026 |
| Relevant Provisions | Sections 107(6), 112(8), 115 and 168(1) of the CGST Act, 2017; Table 14 of Form GST APL-01; Table 20 of Form GST APL-05; S. No. 7 of Form GST RFD-01 |
2. Summary of the Document
The Central Board of Indirect Taxes and Customs (CBIC), GST Policy Wing, has issued Circular No. 259/05/2026-GST dated 26.10.2026 clarifying issues relating to the pre-deposit payable for admission of an appeal under sub-section (6) of section 107 (Appellate Authority) and sub-section (8) of section 112 (Appellate Tribunal) of the CGST Act. Noting that varying interpretations had caused confusion and litigation, the Board has issued six clarifications under section 168(1) to ensure uniform implementation.
The Circular first explains ‘admitted amount’ and ‘tax in dispute’. The admitted amount is the part of the tax, interest, fine, fee and penalty arising from the impugned order which the taxpayer acknowledges as payable and does not intend to challenge; it must be paid in full before filing the appeal. The balance contested is the ‘tax in dispute’, and the pre-deposit, stated in the Circular as ten per cent of the remaining tax in dispute, is computed on it. The taxpayer makes this choice at filing, as reflected in Table 14 of APL-01 and Table 20 of APL-05.
Where the Appellate Authority modifies the liability, the pre-deposit for an appeal to the Appellate Tribunal is computed on the remaining tax in dispute by reference to the liability confirmed by the Appellate Authority and disputed by the appellant, in addition to the amount already paid at the first appellate stage.
On refund, an order of the Appellate Authority or Appellate Tribunal need not expressly direct refund of the pre-deposit; the claim is to be filed under S. No. 7 of FORM GST RFD-01, that is, ‘on account of order’. An appellant who succeeds and applies for refund becomes entitled to it. Even if the Department contemplates or has filed a further appeal, the refund remains payable unless the order is stayed by the Appellate Tribunal or a Court, and cannot be denied merely on that ground.
Since pre-deposit is paid separately at each stage and section 115 provides for interest from the date of payment, the date of payment for interest is determined separately for each level by the actual date of each payment. On remand by the Appellate Tribunal, the appellant is eligible for refund within the prescribed time limit; in a partial remand, refund is released only after the amount corresponding to the confirmed demand, with applicable interest, is recovered or adjusted against the pre-deposit, and the balance is refunded.
Legal Takeaway: Issued under section 168(1), the Circular binds departmental officers, although it does not bind courts or tribunals. Taxpayers should state admitted and disputed components carefully in APL-01 and APL-05, as that statement fixes the quantum of pre-deposit; keep separate payment records for each appellate stage so that interest under section 115, which refers to the rate under section 56, is claimed from the correct dates; and file RFD-01 promptly after a favourable order. It may be read with Circular No. 224/18/2024-GST on stay of recovery pending constitution of the Tribunal.
3. Tabular Summary
| S. No. | Issue | Provision | Clarification | Amount / Basis | Form / Procedure | Impact on Taxpayer | Direction to Officers |
|---|---|---|---|---|---|---|---|
| 1 | Meaning of ‘admitted amount’ and ‘tax in dispute’ | S. 107(6); S. 112(8) | Admitted amount is the portion acknowledged as payable and not challenged; it is paid in full. The contested balance is the tax in dispute. | Pre-deposit on remaining tax in dispute (ten per cent, as stated in the Circular) | Table 14 of APL-01; Table 20 of APL-05 | Taxpayer decides admitted versus disputed portion at the time of filing | Apply the meanings uniformly |
| 2 | Pre-deposit before Appellate Tribunal where Appellate Authority modifies liability | S. 112(8) | Computed with reference to liability confirmed by the Appellate Authority which is disputed by the appellant | Remaining tax in dispute, in addition to amount paid at first appeal | Appeal before Appellate Tribunal | Base is the confirmed liability, not the original demand | Compute on confirmed, disputed liability |
| 3 | Whether order must expressly direct refund of pre-deposit | S. 107(6); S. 112(8) | No explicit mention of refund is required in the order | Not applicable | Refund claim under S. No. 7 of RFD-01 (‘on account of order’) | File claim on receipt of the order | Do not insist on express refund direction |
| 4 | Refund where Department contemplates further appeal | S. 107(6); S. 112(8) | Appellant becomes entitled to refund on application; refund payable unless order is stayed by Tribunal or Court | Pre-deposit paid | Refund application | Entitled to refund despite proposed departmental appeal | Do not deny refund merely because an appeal is intended or filed |
| 5 | Date of payment for interest where pre-deposit paid at both levels | S. 115 | Date of payment determined separately for each level | Actual date of respective payment | Interest computation on refund | Maintain separate payment records for each stage | Compute interest level-wise from actual dates |
| 6 | Refund where Appellate Tribunal remands the matter | S. 112(8) | Refund eligible within prescribed time limit; in partial remand, confirmed demand is first recovered or adjusted with interest | Balance after adjustment of demand upheld | Refund of pre-deposit | Balance refunded after adjustment in partial remand | Release refund after recovery or adjustment of confirmed demand |
Download the Document: Circular No. 259/05/2026-GST dated 26.10.2026 (PDF)
Disclaimer: Prepared by Team GSTIndiaguide.com. This summary is for information and does not constitute legal advice. Refer to original notification, judgement, circular or other documents for reference.
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