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CS Executive · Tax Laws and Practice · Procedural Compliance under GST

Meera Exports obtains a final order from an Appellate Tribunal directing a refund, and the order has attained finality. She files an application consequent to the order, but the refund is not made within sixty days of receipt of that application. Which statement is correct under section 56 of the CGST Act, 2017?

Interest is payable at a notified rate not exceeding nine per cent, running from the date immediately after sixty days from receipt of the application filed consequent to the final order, until the refund is made. The general six per cent ceiling does not apply.

  1. AInterest is payable at a rate not exceeding six per cent from the date of the Tribunal's order
  2. BNo interest is payable because the refund arises from an appellate order
  3. CInterest is payable at a rate not exceeding nine per cent from the date immediately after expiry of sixty days from receipt of the application till the date of refundCorrect
  4. DInterest is payable at a rate not exceeding nine per cent from the date of the original refund application

Explanation

The proviso to section 56 covers refunds arising from orders that have attained finality. If not refunded within sixty days of the consequent application, interest at a rate not exceeding nine per cent is payable from the day after those sixty days until refund. The six per cent option is the general rate and the start dates in other options are wrong.

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