Section 115 compensates an appellant who wins: the pre-deposit is refunded with interest from the day it was paid.
Key points
- Under section 115 of the CGST Act, 2017, where a pre-deposit under section 107(6) or 112(8) is to be refunded because of an order of the Appellate Authority or Tribunal, interest at the rate under section 56 (6%) is payable from the date of payment until the refund.
The provisions
115Interest on refund of pre-deposit
Statutory text
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.
*Enforced w.e.f . 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Is interest paid on refund of GST appeal pre-deposit?
- Yes. Section 115 of the CGST Act provides interest at the section 56 rate from the date of payment until the refund.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Interest runs from the date of payment of the pre-deposit, not from the date of the appellate order.