Statutory interest under Section 56 GST Act is mandatorily payable on undisputed refund delayed beyond 60 days
Last updated: 23 October 2025
Court :
Gujarat High Court
Brief :
The Hon'ble Gujarat High Court in the case of Vineet Polyfab Pvt. Ltd. & Anr. v. Union of India & Ors. [R/Special Civil Application No. 17720 of 2024, order dated September 19, 2025] held that interest under Section 56 of the CGST Act is compulsory for delayed refunds exceeding 60 days from application, regardless of reason for delay, including technical errors in the GSTN-ICEGATE system, unless the taxpayer is at fault. The provision has a compensatory character and is triggered purely by the lapse of the statutory timeline.
Citation :
R/Special Civil Application No. 17720 of 2024, order dated September 19, 2025
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Bimal Jain
Published in GST
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