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

You have reached daily limit of 2 Free Judgements. To view this or other Judgements please subscribe to CCI PRO :

Stay updated! Stay ads free

Browse CAclubindia ads free.
Latest updates on WA.
Daily E-Newsletter and much more.

CCI PRO annual subscription :

Original Price : INR 2999/-

Offer Price : INR 1999/-

Duration : 1 year
(Prices Inclusive of GST)

Know More

Note: If you are a PRO member already, please click here to login (for ad free experience)

Bimal Jain

Published in GST
Views : 57

Attached File : 671907_5882_vineet_polyfab_pvt_ltd_and_anr.pdf

downloaded 18 times

Share Report Abuse

Comments

Statutory interest under Section 56 GST Act is mandatorily payable on undisputed refund delayed beyond 60 days

You have reached daily limit of 2 Free Judgements. To view this or other Judgements please subscribe to CCI PRO :