Central Goods and Services Tax Act, 2017 - Chapter XVIII: Appeals and Revision

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

Section 115 of the Central Goods and Services Tax Act, 2017 protects an appellant who succeeds in appeal after making the statutory amount or pre-deposit required for admission of an appeal. When that amount becomes refundable because of an order of the Appellate Authority or Appellate Tribunal, interest is payable from the date on which the amount was paid until the date on which it is refunded.

Updated: 15 September 2026

Text and meaning of Section 115

Section 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 an order of the Appellate Authority or the Appellate Tribunal, interest at the rate specified under section 56 is payable on that refund from the date of payment of the amount until the date of refund.

In practical terms, the provision applies when an appellant has deposited the amount required for pursuing an appeal and later obtains appellate relief that makes the deposit refundable. Section 115 expressly links the interest rate to section 56, but it gives a specific interest period for this category of refund: the period begins on the date of payment of the appeal amount and ends on the date of refund.

Conditions for interest under Section 115

The appellant must have paid an amount covered by section 107(6) or section 112(8).
An order of the Appellate Authority or Appellate Tribunal must result in that amount becoming refundable.
Interest is calculated at the rate specified for section 56.
For a refund governed by section 115, the statutory interest period runs from the original date of payment to the date of actual refund.

What are Sections 107(6) and 112(8)?

Section 107 governs appeals to the Appellate Authority. Sub-section (6) contains the statutory payment conditions that must be satisfied before the appeal is filed, including payment of the admitted amount and the prescribed pre-deposit in relation to the disputed tax.

Section 112 governs appeals to the Appellate Tribunal. Sub-section (8) prescribes the further payment or pre-deposit requirement for a taxpayer's appeal to the Tribunal, in addition to the amount payable under section 107(6), subject to the limits and conditions contained in the Act.

Interest rate linked to Section 56

Section 56 of the CGST Act deals with interest on delayed refunds. Notification No. 13/2017-Central Tax dated 28 June 2017 notified 6% per annum for section 56 and 9% per annum for the proviso to section 56. Section 115 adopts the rate specified under section 56 for the refund of the appeal amount.

Important distinction: the ordinary rule in section 56 generally measures interest after the statutory refund-processing period, whereas section 115 itself states that interest on a refundable appeal amount runs from the date of payment of that amount until the date of refund. The special wording of section 115 should therefore be considered when calculating interest on a successful appeal pre-deposit refund.

Refund procedure after a successful appeal

Under the CGST Rules, a refund claim may be made electronically in FORM GST RFD-01. For a refund arising from appellate relief, the supporting material may include the reference number and copy of the appellate order and, where relevant, the reference number of the payment made under section 107(6) or section 112(8). Rule 94 deals with an order sanctioning interest payable under section 56 and provides for payment through the prescribed refund payment process.

Provision	Purpose	Relevance to Section 115
Section 107(6)	Payment condition for appeal to Appellate Authority	Amount may become refundable after appellate relief
Section 112(8)	Payment condition for appeal to Appellate Tribunal	Amount may become refundable after Tribunal relief
Section 56	Interest on refunds	Provides the rate referred to by section 115
Section 115	Interest on refund of appeal amount	Interest period runs from payment date to refund date

Example

Suppose an appellant pays the statutory appeal amount on 1 January and the appellate order later results in that amount becoming refundable. If the refund is actually credited on 1 July, section 115 requires interest to be considered for the period from 1 January to 1 July at the rate specified under section 56, subject to the applicable law and notification.

Official GST resources

For the current statutory text, rules, notifications and portal procedure, refer to the official resources below. Taxpayers should verify the latest notification, circular, rule amendment and portal advisory before filing a refund claim.

Frequently asked questions

What does Section 115 of the CGST Act provide?

It provides interest when an amount paid for admission of an appeal under section 107(6) or section 112(8) becomes refundable because of an order of the Appellate Authority or Appellate Tribunal.

From which date is interest payable under Section 115?

The section states that interest is payable from the date of payment of the amount until the date on which that amount is refunded.

Which interest rate applies?

Section 115 refers to the rate specified under section 56. Notification No. 13/2017-Central Tax notified 6% per annum for section 56. The applicable statutory provision and notification should be checked for the relevant refund and period.

Which form is generally used for a GST refund claim?

Rule 89 provides for an electronic refund application in FORM GST RFD-01 for applicable refund claims, along with the prescribed supporting evidence.

Note: This page is a general explanation of the statutory provision. The exact entitlement, amount, interest period and procedure depend on the appellate order, payment record, applicable rules, notifications and facts of the case.