Regarding recollect the GST Pre-Deposit made for appeal

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If you've successfully appealed a GST decision and paid a 25% pre-deposit, you're entitled to a refund. Recent clarifications from CBIC confirm that this refund is not restricted under Section 150 of the Finance (No. 2) Act, 2024, provided the appeal is decided in your favour. The refund process should be initiated by the authorities automatically, though it typically takes around two to three months to be processed.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

26 February 2025 What are the procedure to be followed to refund the GST Pre-Deposit amount, as part of appeal finling we have deposited 25% of amount as pre-deposit and recently the appelate passed the order in favour of us.Is it automatically refunded to our bank account.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 February 2025 CBIC has issued Corrigendum to Circular No. 237/ 31/ Two thousand twenty four -GST to clarify that restriction on refund under section 150 of the Finance (No. 2) Act, 2024 will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer.
So, the refund process should be initiated by the authorities once the order is in your favor.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

27 February 2025 How much time does it takes

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 February 2025 Round about two to three months.

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