Last reviewed: 13 November 2026. Winning an appeal is only half the job; the money paid during the dispute has to come back. The pre-deposit made to file an appeal, any tax paid under protest, and amounts that fall away on a final assessment are all refundable under section 54. With the GST Appellate Tribunal now hearing matters, more of these claims will arise, and they carry a higher interest rate if delayed.
Part of our GST refund series. For every refund category, the common process, time limits and interest, start with the complete GST refund guide.
What can be refunded
| Amount | When refundable |
|---|---|
| Pre-deposit for the first appeal (10% of disputed tax, section 107(6)) | When the appellate authority decides in the appellant's favour |
| Further pre-deposit for the Tribunal (section 112(8)) | When the Tribunal decides in the appellant's favour |
| Tax, interest or penalty paid during proceedings, under protest or to avoid recovery | When the demand is set aside or reduced |
| Excess tax paid under provisional assessment (section 60) | When the final assessment determines a lower liability |
| Amounts recovered by the department in excess of the final demand | On the final order |
Section 115 provides that a pre-deposit refunded on a favourable order carries interest under section 56 from the date of payment of the deposit.
Process
- Obtain a certified copy of the order and confirm whether the department has filed or proposes a further appeal.
- File RFD-01 under the category for refund on account of an assessment, provisional assessment, appeal or other order, or the category for pre-deposit, as applicable, within two years of the order's communication.
- Attach the order, the payment challans or DRC-03 references, and a working of the amount.
- Track for 60 days; if the refund is not paid, interest at 9% applies under the proviso to section 56.
Withholding when the department appeals
Under section 54(11), where the order allowing the refund is the subject of a further appeal and the Commissioner believes paying the refund would harm revenue because of malfeasance or fraud, the refund may be withheld. Under section 54(12), if the refund is later found due, interest at up to 6% is payable on it. Any withholding must be by a reasoned order, which can itself be challenged.
Worked example
A trader in Kalyan disputed a demand of ₹30,00,000 of tax, paid a pre-deposit of ₹3,00,000 and filed an appeal. The appellate authority set the demand aside in an order communicated on 5 August 2026. The trader files RFD-01 for the ₹3,00,000 in September 2026. If the refund is not paid within 60 days of the application, interest at 9% becomes payable, and under section 115 interest on the deposit runs from the date it was paid.
Points to watch
- Credit ledger amounts debited as pre-deposit are re-credited; cash amounts are paid back to the bank account.
- Outstanding demands for other periods can be adjusted against the refund under section 54(10).
- Keep the appeal record complete; the refund officer will match the challan references to the order.
If the refund itself is rejected, see our note on refund rejections and deficiency memos, and the overview of all GST refund types.
Frequently asked questions
How do I get back the pre-deposit after winning a GST appeal?
File RFD-01 under the category for refund of pre-deposit or refund arising from an appeal order, attaching the order and payment references, within two years of the date the order was communicated. Section 115 gives interest under section 56 from the date the deposit was paid.
What interest is payable on a delayed GST refund arising from an appeal?
Under the proviso to section 56, interest at 9% is payable where a refund arising from an order of an appellate authority, Tribunal or court is not paid within 60 days of the application.
Can the department withhold a refund ordered in appeal?
Section 54(11) allows withholding where the order is under further appeal and the Commissioner considers payment would adversely affect revenue because of malfeasance or fraud. If the refund is later found due, section 54(12) provides interest at up to 6%.
What is the relevant date for refund after an appeal?
The date of communication of the judgment, decree, order or direction of the appellate authority, Tribunal or court, under Explanation 2(d) to section 54.
Is a refund available after a final assessment under section 60?
Yes. Where the final assessment determines a lower liability than the provisional one, the excess is refundable, with the relevant date being the date of adjustment of tax after the final assessment.
We prepare and follow up refund claims arising from orders and pre-deposits, and represent clients in refund-related notices and appeals. The outcome rests with the department; our work is to file a complete, documented claim.
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This article is for general information and does not constitute advice on any specific case. Sources: sections 54 to 56 and 77 of the CGST Act, 2017; rules 89 to 97 of the CGST Rules, 2017 as amended by Notification No. 05/2026-Central Tax dated 26 October 2026; Notification No. 03/2026-Central Tax; CBIC circulars cited in the text. Rules, forms and portal functionality change; confirm the current position on the CBIC tax repository and the GST portal before filing. Firm details: Somesh Chandak & Associates, Chartered Accountants, Unit 119, 1st Floor, Centura Square IT Park, SG Barve Road, Wagle Estate, Thane West 400604. FRN 158694W.