GST appeals: how much you must pay before you can appeal
To appeal a GST order, you must pay the amount you accept as owed in full, plus 10% of the tax you dispute.
- Document
- Circulars CGST 259/05/2026-GST
- Dated
- 26 Oct 2026
- Effective
- Not stated. The circular is dated 26.10.2026 and sets no separate effective date.
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Pay the amount you accept as owed in full before filing an appeal.
- Pay 10% of the disputed tax at each appeal level.
- Record which part you accept and which you dispute in the appeal form.
- A refund of your deposit is not denied just because the department appeals.
- On partial remand, refund waits until the department's upheld share is adjusted.
In short
This circular from CBIC, the central tax board, explains how much you must pay as GST pre-deposit before you can appeal against a GST order. It was issued on 26 October 2026. Tax officers and taxpayers were reading the pre-deposit rules in different ways, which caused confusion and more litigation. The circular is meant to make every field office apply the rules the same way. It covers appeals to the Appellate Authority and to the Appellate Tribunal under sections 107 and 112 of the CGST Act, the main GST law.
What has changed
How it worked before
The pre-deposit requirement was already in the law under sections 107(6) and 112(8) of the CGST Act. According to the circular, however, varying interpretations of these rules were being taken, and this inconsistency had led to confusion and litigation.
What has changed
The circular defines the 'admitted amount' as the part of the tax, interest, fine, fee or penalty that you accept as payable and do not challenge. That amount must be paid in full before you file. The rest, which you contest, is 'tax in dispute', and the 10% pre-deposit is calculated on it. You decide the split when you file, and record it in Table 14 of form APL-01 or Table 20 of form APL-05. At the Tribunal, the 10% is calculated on the liability the Appellate Authority confirmed that you still dispute. If you win, you claim the refund on form RFD-01 under S. No. 7, 'on account of order'. The order does not need to say the deposit must be refunded. Interest on the refund is worked out separately for each level, from the date you actually paid at that level.
Who this affects
Businesses and individuals registered under GST who want to appeal a GST order or demand against them, before the Appellate Authority or the Appellate Tribunal. It also matters if you are waiting for a refund of a deposit you made for an appeal.
An example
Meera runs a registered garment shop. An order demands Rs 1,00,000 in GST. She accepts Rs 40,000 as owed and disputes Rs 60,000. Before appealing she must pay the Rs 40,000 in full, plus 10% of the Rs 60,000 disputed tax, which is Rs 6,000. She records the Rs 40,000 and Rs 60,000 split in her appeal form.
What you should do
Before you file, decide which part of the demand you accept and which you dispute. Pay the accepted part in full, then pay 10% of the disputed tax. Record the split in the appeal form as described above. If you win, file form RFD-01 under S. No. 7 to claim the refund. Keep a record of each payment date, since interest depends on them.
If you do nothing
The circular says the admitted amount must be paid in full before the appeal is filed, and the 10% pre-deposit is required for the appeal to be admitted. Without these payments, the appeal will not be admitted. The circular does not set out a separate penalty for skipping them.
The terms explained
- pre-deposit
- The payment you must make before an appeal is admitted. It has two parts: the amount you accept as owed in full, and 10% of the tax you dispute.
- admitted amount
- The part of the demand that you accept as payable and do not plan to challenge. It must be paid in full before you appeal.
- tax in dispute
- The part of the demand you contest and plan to appeal. The 10% pre-deposit is calculated on this part.
- Appellate Tribunal
- The higher appeal body you can approach after the Appellate Authority has decided your case.
- remand
- When a higher body sends the case back to the original officer to decide again, instead of deciding it itself.
The original document
| Issued by | GST |
|---|---|
| Document | Circulars CGST 259/05/2026-GST |
| Full 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 |
| Issued on | 26 October 2026 |
| Effective | Not stated. The circular is dated 26.10.2026 and sets no separate effective date. |
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