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CA Final · Indirect Tax Laws · Refunds

Under rule 94 of the CGST Rules, 2017, the proper officer sanctions interest on a delayed refund to Nandini Foods Ltd. Which statement correctly describes the required order and payment of interest?

The proper officer passes an order with a payment order in FORM GST RFD-05, stating the delayed refund amount, period of delay and interest payable. The interest is electronically credited to a bank account of the applicant that is in the registration particulars and specified in the refund application.

  1. AOrder in FORM GST RFD-05 with a payment order, specifying the delayed refund amount, the period of delay and the interest payable, with interest credited to a bank account of the applicant mentioned in registration particulars and specified in the refund applicationCorrect
  2. BOrder in FORM GST RFD-08, with interest adjusted against the applicant's electronic credit ledger
  3. COrder in FORM GST RFD-09, with interest paid in cash at the applicant's request to any account
  4. DOrder in FORM GST RFD-05, with interest credited to the electronic cash ledger of the applicant

Explanation

Rule 94(1) requires an order along with a payment order in FORM GST RFD-05 specifying the refund amount delayed, period of delay and interest. Interest is electronically credited to a bank account in the registration particulars and specified in the refund application. RFD-08 is a notice and RFD-09 is a reply, so the other options are wrong.

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