GST Appeal Pre-deposit Rules Clarified (2026): Circular No. 259/05/2026-GST
CA Meet Dhrangadhariya 
October 26, 2026
CA Meet Dhrangadhariya October 26, 2026
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Last updated: 26 October 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP
Quick summary
Filing a GST appeal is not free – a mandatory pre-deposit has to be paid first, and working out exactly how much has been a genuine source of confusion and inconsistent practice across field offices. Circular No. 259/05/2026-GST, dated 26 October 2026, settles six specific questions on this.
New to terms such as “admitted amount” or “tax in dispute”? See the technical terms explained in simple words further down.
To file an appeal:
| Term | Meaning |
|---|---|
| Admitted amount | The portion of the tax, interest, fine, fee or penalty from the impugned order that the taxpayer accepts as payable, and does not intend to contest by appeal. Must be paid in full before filing. |
| Tax in dispute | The remaining, contested portion of the liability, against which the appeal is actually filed. Only this portion attracts the 10% pre-deposit. |
The taxpayer decides this split, at the time of filing the appeal – it is recorded in Table 14 of FORM GST APL-01 (or Table 20 of FORM GST APL-05, for an appeal direct to the Tribunal).
If the Appellate Authority modifies the original demand – say, confirms a lower amount than the department originally raised – and the taxpayer wants to go further to the Appellate Tribunal, the 10% pre-deposit for that second appeal is computed on the amount confirmed by the Appellate Authority, not the department’s original figure. A partly successful first appeal therefore reduces the base for the second pre-deposit.
Getting the admitted-versus-disputed split right at the time of filing an appeal avoids both an under-deposit (which can delay admission) and tying up more working capital than necessary – please reach out to our team and we will be happy to assist with appeal filing and pre-deposit computation.
| Term | What it means |
|---|---|
| Pre-deposit | A partial, mandatory payment of the disputed tax amount that must be made before a GST appeal is admitted for hearing. |
| Admitted amount | The part of a tax demand the taxpayer accepts and does not intend to contest. |
| Tax in dispute | The contested part of a tax demand that the taxpayer intends to appeal against. |
| Appellate Authority | The first level of appeal against an adjudication order under GST. |
| Appellate Tribunal | The second level of appeal, above the Appellate Authority. |
| FORM GST RFD-01 | The standard application form used to claim any GST refund, including a pre-deposit refund. |
Under section 107(6) of the CGST Act, an appeal to the Appellate Authority needs full payment of the “admitted amount” (tax, interest, fine, fee and penalty the taxpayer accepts) plus 10% of the remaining “tax in dispute.” A further appeal to the Appellate Tribunal under section 112(8) needs the same treatment, in addition to what was already paid for the first appeal.
The admitted amount is the portion of the demand the taxpayer is not contesting and must pay in full. The tax in dispute is the portion the taxpayer intends to appeal against, and only this portion attracts the 10% pre-deposit.
The taxpayer, at the time of filing the appeal – this choice is recorded in Table 14 of FORM GST APL-01 (or Table 20 of FORM GST APL-05 for a Tribunal appeal).
If the taxpayer then appeals to the Appellate Tribunal, the 10% pre-deposit for that second appeal is computed on the liability as confirmed by the Appellate Authority, not the original demand raised by the department.
No. The order does not need to mention it explicitly – the taxpayer separately files a refund claim under category “on account of order” in FORM GST RFD-01 once the order is in their favour.
No, unless a higher forum has actually stayed the favourable order. The circular is explicit that a refund cannot be denied merely because the department intends to or has filed a further appeal.
This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.
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