Question 21 - Whether interest becomes payable on refund of pre-deposit amount? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 21. Whether interest becomes payable on refund of pre-deposit amount? Ans. Yes. As per Section 85 of MGL Where an amount deposited by the appellant under sub-section (6)/(4) of section 79 or under sub-section (10)/(7) of section 82 is required to be refunded consequent to any order of the First Appellate Authority or of the Appellate Tribunal, as the case may be, interest at the rate specified under section 39 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount.