GST CASH BALANCE REFUND

Hi Sundaram,

Regarding your query on interest for delay in GST refund payment:

Key points:

• As per Section 56 of the CGST Act, 2017, if the refund amount is not paid within 60 days from the date of receipt of the application, interest is payable.

• The interest rate is 6% per annum or as prescribed, from the expiry of 60 days till the refund is actually paid.

• Since your refund claim was filed by 20th March 2024, the department should have released the refund by 19th May 2024 (60 days).

• If the refund is delayed beyond this, you are entitled to interest on the delayed refund amount.

Your case:

• You mentioned the sanction order is released but the money is still not credited.

• Interest liability arises only if the refund is not paid within 60 days of filing the claim.

• The interest will be calculated from the day after 60 days till the actual payment date.

• You should follow up with the department and escalate if needed to get the refund released.

• You may also file a representation citing the interest liability on delayed payment.

Suggested action:

1. Keep a record of refund application date and sanction order date.

2. Track the timeline from application filing date.

3. Raise a formal representation to the GST department for release of refund along with interest.

4. You can also seek assistance from GST helpdesk or through a tax consultant if delay continues.

In short: Yes, you are eligible for interest if the refund is delayed beyond 60 days from filing date. But the interest starts only from the 61st day until the refund is actually paid.