Assessee intitled to Interest immediately after the expiry of sixty days from date of refund applications till date on which refund was credited to bank account

Last updated: 06 April 2024

Save Share

Quick Summary

The Delhi High Court has ruled that businesses are automatically entitled to 6% interest on GST refunds if they are not processed within 60 days of the application date. This interest is payable from the day after the 60-day period expires until the refund is credited to the applicant's bank account. The court emphasised that this interest payment is statutory and does not require a specific claim from the assessee.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court, in the case of Raghav Ventures vs. Commissioner of Delhi [W.P.(C) NO. 12209 OF 2023 dated March 01, 2024], held that the Petitioner is automatically entitled to interest at 6% under Section 56 of the Central Goods and Services Tax Act("the CGST Act") if the refund is not processed within 60 days from the date of refund application till date on which refund was credited to the bank account of the Petitioner.

Citation :
W.P.(C) NO. 12209 OF 2023 dated March 01, 2024

Daily Limit Reached