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

Under section 56 of the CGST Act, 2017, interest on delayed refund becomes payable when tax ordered to be refunded under section 54(5) is not refunded within a stated period from the date of receipt of the application. What is that period?

Interest on a delayed refund becomes payable if the refund ordered under section 54(5) is not paid within sixty days of receiving the application. Interest is computed for the period of delay beyond those sixty days until the refund date, at a notified rate up to six per cent.

  1. AThirty days
  2. BSixty daysCorrect
  3. CNinety days
  4. DOne hundred and eighty days

Explanation

Section 56 provides for interest where refund ordered under section 54(5) is not made within sixty days from the date of receipt of the application under section 54(1). Interest runs for the delay beyond sixty days till the date of refund, at a rate not exceeding six per cent as notified.

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