CA Final · Indirect Tax Laws · Refunds

Under section 56 of the CGST Act, a refund claim arises from an order of an Appellate Authority that has attained finality. The applicant files an application consequent to that order and the refund is not paid within sixty days of receipt of that application. What does the first proviso to section 56 provide?

Where the refund arises from a final order of an adjudicating authority, appellate authority, tribunal or court and is not paid within sixty days of the consequent application, interest at a notified rate not exceeding nine per cent. is payable from the day after those sixty days until refund.

1. AInterest not exceeding six per cent. is payable from the date of the order
2. BInterest at a rate not exceeding nine per cent. is payable from the date immediately after expiry of sixty days from receipt of the application till the date of refundCorrect
3. CNo interest is payable because the refund arises from an appeal
4. DInterest not exceeding nine per cent. is payable from the date of the original payment of tax