Detailed Explanation
How it works
Section 107 of the CGST Act requires ten per cent of the disputed tax to be deposited before the first appellate authority will entertain an appeal, subject to a monetary ceiling, and Section 112 requires a further deposit before the Appellate Tribunal. Unlike the customary deposit in income tax, this is a statutory condition of admission — the appeal simply will not be entertained without it. Where the appeal succeeds the amount is refundable with interest under Section 115.
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Income-tax Act 2025 update: Section 112 of the 1961 Act is now renumbered under the Income-tax Act 2025 under the new Income-tax Act 2025, effective 1 April 2026. Rates and thresholds discussed below remain applicable unless stated.
Frequently asked questions
Is the pre-deposit refundable?
Yes, with interest under Section 115, where the appeal succeeds. It is a condition of admission, not a payment of the demand.
Can a GST appeal be filed without the pre-deposit?
No. It is a statutory condition and the appeal will not be admitted without it.