Does interest on a GST appeal pre-deposit run from the date of payment?

Yes. Section 115 expressly states that interest is payable from the date of payment of the covered pre-deposit amount until the date of refund of that amount.

Which pre-deposits are covered by Section 115?

Section 115 specifically refers to amounts paid under Section 107(6) and Section 112(8), where those amounts are required to be refunded consequent to an order of the Appellate Authority or Appellate Tribunal.

Does Section 115 cover every amount voluntarily deposited during a GST dispute?

No. The text of Section 115 specifically identifies amounts paid under Section 107(6) and Section 112(8). A voluntary deposit made outside those statutory pre-deposit provisions must be examined under the applicable general refund provisions rather than automatically treated as a Section 115 pre-deposit.

What is the current GSTAT pre-deposit percentage?

For the ordinary tax-dispute framework, Section 112(8) was amended with effect from 1 November 2024 so that the additional Tribunal-stage pre-deposit is 10% of the remaining disputed tax, subject to the statutory maximum. Special rules apply to penalty-only orders from 1 October 2025.

CGST Section 115 – Interest on Refund of Amount Paid for Admission of Appeal

Q: What is Section 115 of the CGST Act?

Section 115 provides for interest when an amount paid by an appellant under Section 107(6) or Section 112(8) is required to be refunded as a consequence of an order of the Appellate Authority or Appellate Tribunal. Interest is calculated from the date of payment to the date of refund at the rate specified under Section 56.

At a glance Statutory provision Simple explanation Pre-deposit framework Interest calculation Practical examples Refund process Important distinctions FAQs

Section 115 at a glance

Section 115 protects the appellant's entitlement to interest when a statutory appeal pre-deposit becomes refundable because of an order of the Appellate Authority or Appellate Tribunal.

Covered paymentAmount paid under Section 107(6) or Section 112(8).

TriggerThe amount becomes refundable consequent to an appellate order.

Interest periodFrom the date the covered amount was paid until the date it is refunded.

Interest rateThe rate specified under Section 56 applies to the Section 115 refund.

Why Section 115 is important

When a taxpayer files a GST appeal, the law can require payment of a statutory pre-deposit as a condition for admission of the appeal. That money is not the same as an ordinary voluntary payment of the disputed demand. If the appellate outcome makes the covered pre-deposit refundable, Section 115 provides for interest on that amount.

The most important feature is the starting date. Section 115 expressly links interest to the date of payment of the covered amount, rather than merely starting interest from the date on which a refund application is filed.

Memory line: Section 115 = statutory appeal pre-deposit becomes refundable → interest from payment date to refund date.

Statutory provision — Section 115

115. Interest on refund of amount paid for admission of appeal.— Where an amount paid by the appellant under sub-section (6) of section 107 or sub-section (8) of section 112 is required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount.

The provision contains one operative sentence, but it connects four important elements: Section 107(6), Section 112(8), the appellate order that makes the amount refundable, and Section 56 for the interest rate.

Section 115 explained step by step

1First identify the payment

Section 115 does not refer to every amount that a taxpayer may pay during a dispute. It specifically refers to amounts paid under Section 107(6) or Section 112(8).

2The amount must become refundable because of an appellate order

The provision applies when the amount is required to be refunded consequent to an order of the Appellate Authority or Appellate Tribunal.

For example, if a taxpayer pays the statutory pre-deposit and the appeal is decided in a manner that makes all or part of that pre-deposit refundable, Section 115 becomes relevant to the refundable portion.

3Interest starts from the payment date

This is one of the most important features of the section. The statutory wording says interest is payable from the date of payment until the date of refund.

Do not confuse the two dates: the date on which the taxpayer files the refund application is not the starting point specified by Section 115 for the covered pre-deposit. The section expressly uses the date of payment.

4The interest rate comes from Section 56

Section 115 does not write a separate percentage inside its own text. It says the rate specified under Section 56 applies.

Therefore, the rate should be checked against the Section 56 framework and the notification applicable to the relevant period. This page deliberately avoids presenting an unqualified rate where the precise statutory situation needs to be determined.

5The refundable principal and interest are separate calculations

The taxpayer should first determine how much of the statutory pre-deposit is actually refundable under the appellate order. Interest is then calculated on the refundable amount for the applicable period.

What is the GST appeal pre-deposit?

The pre-deposit is a statutory amount that must be paid to satisfy the conditions for filing an appeal. It is different from simply accepting the disputed tax liability.

Section 107(6) — appeal before the Appellate Authority

For an ordinary tax-dispute appeal, Section 107(6) requires payment of the admitted dues in the manner specified by the provision and a prescribed percentage of the remaining disputed tax, subject to the applicable statutory cap. The detailed current conditions should be checked for the nature and date of the appeal.

Section 112(8) — appeal before the Appellate Tribunal

For an ordinary tax-dispute appeal to the Appellate Tribunal, Section 112(8) requires payment of the admitted amount and an additional pre-deposit calculated on the remaining disputed tax, subject to the statutory maximum.

Finance (No. 2) Act, 2024 reduced the Tribunal-stage percentage from 20% to 10% and reduced the maximum amount from ₹50 crore to ₹20 crore, with the amended framework taking effect from 1 November 2024. citeturn5search8turn5search7

Stage	Provision	Ordinary tax-dispute pre-deposit framework	Why it matters for Section 115
First appeal	Section 107(6)	10% of disputed tax, subject to applicable statutory cap and conditions.	This payment is expressly covered by Section 115 if it becomes refundable consequent to the appellate order.
Tribunal appeal	Section 112(8)	Additional 10% of the remaining disputed tax under the post-1 November 2024 framework, subject to the applicable cap.	This payment is also expressly covered by Section 115 if it becomes refundable consequent to the Tribunal order.

Penalty-only orders: The law was further amended with effect from 1 October 2025 to address appeals involving a penalty demand without a demand of tax. The specific provisos to Sections 107(6) and 112(8) should be checked when the impugned order contains only penalty and no tax demand. citeturn2search12turn5search1

Section 115 — the four conditions

Condition	Question to ask
1. Statutory payment	Was the amount paid under Section 107(6) or Section 112(8)?
2. Appellate consequence	Has an Appellate Authority or Appellate Tribunal order made the amount refundable?
3. Refund amount	How much of the pre-deposit actually becomes refundable under the operative order?
4. Interest period	Calculate from the payment date to the refund date at the rate applicable under Section 56.

How to calculate interest under Section 115

Interest = Refundable pre-deposit × applicable Section 56 rate × number of days ÷ 365

For a simple-interest calculation, the key inputs are:

The amount of statutory pre-deposit that is actually refundable.
The applicable rate under Section 56 for the relevant legal situation.
The date on which the covered pre-deposit was paid.
The date on which the refundable amount is actually refunded.
The applicable day-count convention used for the calculation.

Worked Example 1 — complete success at first appeal

Facts: A taxpayer disputes ₹10,00,000 of tax and pays a hypothetical Section 107(6) pre-deposit of ₹1,00,000 on 1 April 2026. The Appellate Authority decides the matter so that the full ₹1,00,000 becomes refundable, and the amount is refunded on 1 April 2027.

Assuming the applicable Section 56 rate for the relevant calculation is 6% per annum:

₹1,00,000 × 6% × 365 ÷ 365 = ₹6,000 interest

Total refund in this illustration = ₹1,06,000, comprising ₹1,00,000 principal + ₹6,000 interest.

This is an illustration of the calculation method, not a statement that 6% must apply to every future fact pattern. The applicable notified rate should be verified for the relevant period and statutory category.

Worked Example 2 — Tribunal-stage pre-deposit

Facts: A taxpayer makes a Tribunal-stage pre-deposit of ₹4,00,000 on 1 January 2026. The Tribunal later decides the matter in a way that makes the full ₹4,00,000 refundable. The refund is paid on 1 January 2027.

At an assumed Section 56 rate of 6%:

₹4,00,000 × 6% × 365 ÷ 365 = ₹24,000 interest

Total = ₹4,24,000.

Worked Example 3 — partial refund

Suppose ₹5,00,000 was paid as a covered pre-deposit. The appellate order results in only ₹3,00,000 becoming refundable, while ₹2,00,000 is retained/adjusted according to the operative order.

Section 115 interest is calculated on the ₹3,00,000 that is refundable, not automatically on the entire original ₹5,00,000.

Detailed example — from appeal filing to refund

Step 1 — Demand order

A taxpayer receives an order involving disputed tax of ₹20,00,000.

Step 2 — First appeal

The taxpayer pays the applicable statutory pre-deposit under Section 107(6) and files the appeal.

Step 3 — Appellate order

The Appellate Authority decides the dispute and the pre-deposit becomes refundable to the extent provided by the order.

Step 4 — Refund claim/processing

The taxpayer follows the applicable GST refund procedure and provides the appellate order/payment evidence required by the rules.

Step 5 — Interest

Section 115 requires interest on the covered refundable amount from the date of payment until the date of refund, at the rate specified under Section 56.

Practical record: Keep the pre-deposit payment reference, appeal number, appellate order, refund application/ARN, refund sanction/payment order and bank-credit date together. These documents establish the amount and the dates needed for reconciliation.

Practical examples

Example 1 — Appeal completely allowed

A company pays ₹2,50,000 as the covered statutory pre-deposit. The appeal is decided in its favour and the entire ₹2,50,000 becomes refundable. Interest under Section 115 is computed from the payment date through the refund date at the applicable Section 56 rate.

Example 2 — Demand partly sustained

A taxpayer pays ₹3,00,000 as a statutory pre-deposit. The appellate order does not make the whole amount refundable because part of the underlying demand remains payable. The refundable principal must be identified from the operative appellate order. Section 115 interest applies to the amount that is actually required to be refunded under the covered provision.

Example 3 — Tribunal appeal after first appeal

A taxpayer has already paid the Section 107(6) amount and subsequently files an appeal to GSTAT after making the additional Section 112(8) pre-deposit. If the Tribunal's order makes the covered Tribunal-stage amount refundable, Section 115 applies to that covered payment. The earlier first-stage amount should also be examined separately according to the order and the applicable refund mechanism.

Example 4 — Voluntary deposit during investigation

A taxpayer voluntarily deposits ₹5,00,000 during an investigation, but the payment is not a statutory pre-deposit under Section 107(6) or Section 112(8). The fact that the taxpayer later receives an appellate order does not automatically convert that voluntary payment into a Section 115 payment. The legal basis for the refund must be examined separately.

Example 5 — Penalty-only dispute

Suppose an order involves penalty without a tax demand. The special provisions introduced for penalty-only appeals from 1 October 2025 need to be examined before calculating the amount that qualifies as the statutory appeal payment. Once the covered amount is identified, the Section 115 question depends on whether it is an amount paid under Section 107(6) or Section 112(8) and becomes refundable consequent to the relevant appellate order.

Refund process — what should the taxpayer track?

Section 115 creates the interest entitlement for the covered amount, but the practical refund workflow also involves the GST refund provisions and rules.

Stage	Practical action	Record to preserve
1. Pre-deposit	Pay the statutory amount required for the appeal.	Payment/challan/ledger debit reference and date.
2. Appeal	File the appeal and preserve the appeal number.	APL form, acknowledgement and appeal documents.
3. Appellate order	Read the operative portion and determine what amount becomes refundable.	Certified/communicated appellate order.
4. Refund application	Use the applicable refund procedure and supporting documents.	RFD-01/ARN and supporting records, where applicable.
5. Refund sanction	Check principal and interest amounts.	Refund order/payment advice and calculation.
6. Bank credit	Record the actual date and amount credited.	Bank statement.
7. Reconciliation	Reconcile principal + Section 115 interest with the appellate order and books.	Internal refund reconciliation statement.

CBIC's refund rules require supporting evidence for refund applications, including the relevant order or the reference/payment details for amounts paid under Sections 107(6) and 112(8). citeturn0search0

Important distinctions

Section 115 vs Section 56

Section 115	Section 56
Specifically addresses refund of amounts paid under Section 107(6) or Section 112(8).	General statutory framework for interest on delayed refunds.
Interest period expressly runs from payment date to refund date.	Contains the general delayed-refund framework and the rate provisions referred to by Section 115.
Triggered by the relevant appellate order making the covered amount refundable.	Operates more broadly in the refund framework.

Section 115 vs ordinary voluntary payment

Statutory appeal pre-deposit	Other payment/deposit
Expressly identified by Section 107(6) or 112(8).	May arise from investigation, demand payment, voluntary deposit or another statutory provision.
Covered by Section 115 if refundable consequent to the relevant appellate order.	Does not automatically fall under Section 115 merely because a dispute later ends in the taxpayer's favour.
Interest period is expressly from payment date to refund date.	Refund and interest must be determined under the provision applicable to that particular payment.

Section 115 vs Section 54 refund procedure

The existence of Section 115 does not mean the taxpayer should ignore the applicable refund procedure. The principal refund still has to be processed through the statutory mechanism applicable to the claim. The important distinction is that Section 115 provides the specific interest rule for the covered appeal pre-deposit.

Common mistakes in Section 115 calculations

Starting interest from the date of the refund application instead of the statutory payment date.
Calculating interest on the entire original deposit when only part has become refundable.
Calling every payment made during litigation a “pre-deposit”.
Using an old Section 112(8) percentage without checking the amendment effective from 1 November 2024.
Ignoring the special penalty-only appeal provisions effective from 1 October 2025.
Using a rate without checking the Section 56 notification applicable to the relevant period and legal situation.
Failing to reconcile the refund amount with the operative portion of the appellate order.
Not retaining the original payment date and actual refund-credit date.

Professional working paper format

Particular	Amount / Date
Underlying disputed tax	₹ __________
Section 107(6) pre-deposit	₹ __________
Date of Section 107(6) payment	__/__/____
Section 112(8) additional pre-deposit	₹ __________
Date of Section 112(8) payment	__/__/____
Date of appellate order	__/__/____
Refundable amount	₹ __________
Applicable Section 56 rate	_____ %
Interest start date	__/__/____
Actual refund date	__/__/____
Section 115 interest	₹ __________

Related provisions

Section 107

Appeals to the Appellate Authority and the first-stage pre-deposit.

Section 112

Appeals to the Appellate Tribunal and Tribunal-stage pre-deposit.

Section 113

Orders of the Appellate Tribunal.

Section 54

General statutory refund framework.

Section 56

Interest on delayed refunds and the rate framework referenced by Section 115.

Rule 89 and related refund rules

Operational procedure and documentary requirements for refund applications.

Frequently Asked Questions

What is Section 115 of the CGST Act?

It provides interest when an amount paid under Section 107(6) or Section 112(8) becomes refundable consequent to an order of the Appellate Authority or Appellate Tribunal.

From which date is interest calculated?

Section 115 expressly provides for interest from the date of payment of the covered amount until the date of refund.

Does the taxpayer get interest if the appeal is successful?

Where the covered pre-deposit is required to be refunded consequent to the appellate order, Section 115 provides for interest at the rate specified under Section 56.

Does Section 115 cover a voluntary deposit made during investigation?

Not automatically. The section specifically identifies payments under Sections 107(6) and 112(8). The legal basis of any other deposit must be examined separately.

What changed in Section 112(8) from November 2024?

The Finance (No. 2) Act, 2024 reduced the additional Tribunal-stage pre-deposit from 20% to 10% and reduced the maximum amount from ₹50 crore to ₹20 crore, effective from 1 November 2024. citeturn5search8turn5search7

What if the order contains only penalty and no tax?

Special pre-deposit provisions for penalty-only orders became applicable from 1 October 2025. The relevant provisos to Sections 107(6) and 112(8) must be checked for the particular appeal. citeturn2search12turn5search1

What rate of interest applies?

Section 115 itself says the rate specified under Section 56. The applicable notification and the legal category of the refund should be verified for the relevant period rather than assuming a rate from an old example.

Is the interest calculated from the date of the appellate order?

No. Section 115 expressly states that interest is payable from the date of payment of the covered amount until the date of refund.

Section 115 — quick revision

107(6)112(8)RefundInterestPayment dateRefund dateSection 56 rate

Memory line: Appeal pre-deposit becomes refundable → Section 115 interest runs from payment date until refund date.

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This page is provided for educational and workflow-support purposes. GST provisions, rules, notifications, circulars and judicial interpretation may change and may apply differently depending on the relevant tax period and facts. Before relying on this material for compliance, litigation or any financial/legal decision, verify the provision and applicable amendments, rules, notifications, circulars and other official material for the relevant date.