TMI BlogInterest on Delay Refund [section 56 or CGST Act & Rule 94/ 96C of CGST Rules]X X X X Extracts X X X X X X X X Extracts X X X X ..... f receipt of application under the sub-section (1) of section 54 of CGST Act till the date of refund of such tax ( w.e.f. 01.10.2023 ) for the period of delay beyond sixty days from the date of receipt of such application till the date of refund of such tax, to be computed in such manner and subject to such conditions and restrictions as may be prescribed has been substituted. [ Section 56 ] Case law AC IMPEX VERSUS UNION OF INDIA AND ORS .( 2023 (4) TMI 1182 - DELHI HIGH COURT ) Issue : The main issue in the case was to determine the date from which statutory interest under Section 56 of the Central Goods and Services Tax Act, 2017 (CGST Act) would get triggered. Facts : The petitioner claimed that inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt against an order of the proper officer under sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate Tribunal or by the court shall be deemed to be an order passed under the said sub-section (5). Order sanctioning interest on delayed refund [ Rule 94 of CGST Rules ] Where any interest is due and payable to the applicant under section 56, the proper officer shall make an order along with a payment order in FORM GST RFD-05. Such order shall specifying therein the amount of refund which is delayed, the period of delay for which interest is payable and the amount of interest payable . Such amount of interest shall be electronically credited to any of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable on merits, Interest liability would arise u/s 56 of the CGST Act. i.e interest would be payable if the amount has not been refunded within 60 days of filing of application for refund by the claimant. That is to say, after the judgment or decree holding the tax to be not payable, the appellant will have to file a claim a claim u/s 54(1) and thereafter if the amount is 60 days of filing of application, interest liability will arise for Revenue. In case of refund of pre- deposit amount:- For refund of amounts paid as pre-deposit (in terms of Section 107(6) 112 (8) ) interest liability will arise in terms of Section 115 of the CGST Act. As per Section 115 of CGST Act, where an amount paid by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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