Interest on Refund of Pre-deposit pursuant to Order by Appellate authority in favour

[Nandesh Barai]

Recently, Appellate authority passed OIA in our favour. At the time of filing Refund application online on GSTN portal when we entered the interest amount an error message poped up "Entered amount cannot be greater than amount as per demand.

In these scenario what is the ideal solution as the system is not letting us enter the interest amount. Further, what are the documents to be enclosed to claim a refund of pre-deposit along with interest on receipt of order of appellate authority in our favour.

[Sadanand Bulbule]

In Form GST RFD-01, enter only the principal pre-deposit amount (setting interest to zero) to bypass the portal validation error.

Claim the statutory 6% interest payable under Section 115 by enclosing a detailed calculation sheet and covering letter alongside the Order-in-Appeal, challan debit proof, and bank details for the Proper Officer to sanction in Form GST RFD-06.

AI Summary

Pre-deposit refund interest: GST portal validation may prevent combined claims exceeding the recorded demand after a favourable appeal.
GST refund of a pre-deposit after a favourable appellate order is affected where the online portal prevents entry of interest exceeding the recorded demand amount. The issue concerns the procedural response to this validation error and the records needed to support a refund claim for the pre-deposit and associated interest. Supporting material must substantiate the appellate relief, payment of the pre-deposit, and the interest component claimed.