Pre-Deposit under GST Law

Under GST, pre-deposit means the statutory amount to be paid before an appeal can be filed. It is not optional, and it is not the full demand in every case. The law links pre-deposit with the right of appeal and with deemed stay of recovery of the balance amount. The main provisions are section 107 for appeal before the Appellate Authority and section 112 for appeal before the Appellate Tribunal.

Pre-Deposit in Appeal before Appellate Authority – Section 107

Section 107(6) provides that no appeal shall be filed unless the appellant first pays the prescribed amount. The requirement covers the admitted portion and the disputed tax portion. The proviso, effective from 1 October 2025, separately covers cases where the order demands penalty without involving demand of any tax. Section 107(7) further provides deemed stay of recovery of the balance amount after payment of the required pre-deposit.

1. Admitted tax, interest, fine, fee and penalty must be paid in full.
2. 10% of the remaining tax in dispute must be paid.
3. The disputed tax deposit is subject to a maximum of ₹20 crore.
4. In a penalty-only order, 10% of penalty must be paid.
5. The penalty-only proviso is effective from 1 October 2025.
6. After payment, recovery of the balance amount is deemed to be stayed.

Pre-Deposit in Appeal before Appellate Tribunal – Section 112

Section 112(8) provides that no appeal shall be filed unless the appellant first pays the prescribed amount. Here also, the requirement covers the admitted portion and the disputed tax portion, but the Tribunal deposit is in addition to the amount already paid under section 107(6). The proviso, effective from 1 October 2025, separately deals with orders demanding penalty without involving demand of any tax. Section 112(9) provides deemed stay of recovery of the balance amount till disposal of the appeal.

1. Admitted tax, interest, fine, fee and penalty must be paid in full.
2. 10% of the remaining tax in dispute must be paid again.
3. This deposit is in addition to the amount paid under section 107(6).
4. The disputed tax deposit is subject to a maximum of ₹20 crore.
5. In a penalty-only order, 10% of penalty must be paid again.
6. The penalty-only proviso is effective from 1 October 2025.
7. After payment, recovery of the balance amount is deemed to be stayed till disposal of the appeal.

Different Types of Orders

This shows that the Act does not say that pre-deposit is always 10% of total demand. In ordinary cases, it refers to tax in dispute. In penalty-only cases, it separately refers to penalty.

Amendment Position

The penalty-only proviso under section 107(6) and the penalty-only proviso under section 112(8) came into force from 1 October 2025. The current text also provides 10% of disputed tax, subject to a maximum of ₹20 crore, at each respective stage.