Assessee entitled to interest on GST Refund from the date of expiry of 60 days from the date of first application even if succeeded in appeal
The petitioner had filed a GST refund application, where the adjudicating authority sanctioned partly and rejected balance amount.An Appeal was filed by assessee where revenue was directed to refund balance amount with interest but revenue after 60 days, sanctioned only balance amount and interest was denied. Again the petitioner’s claim for interest @9% on the GST refund granted, was rejected.
The Honorable Delhi High Court made the following observations and rulings:
Section 56 of the CGST Act provides for a six per cent interest rate on the amount of refund due, which remains unpaid after sixty days from the date of the refund application. However, the proviso states that a higher interest rate of 9% is applicable when the claim for refund is finalized in appellate proceedings.
Recognized that the subsequent refund applications filed after the orders issued by the Appellate Authority are meant to enforce the already passed orders and do not demand fresh adjudication.
Held that, the Impugned Order is set aside and allowed the writ petition.
Ordered the respondent to process the petitioner’s refund application.
The copy of the order is as under:
