Delayed Refund along with Interest under Section 56 of the Goods & Services Tax Act,2017

Case Details:

Issue- In the above case, the petitioner has applied for a refund dated 20.07.2021 whereas refund was received in two parts on different dates i.e. first part on 04.01.2022 and another part on 22.03.2022. Petitioner contented that the refund amount shall be disbursed along with applicable Interest @ 6% as per Section 56 of the Act and where there is a time bar of 60 days from the date of application after which the amount of interest also increases.

Held- It was held that department cannot withhold any amount beyond the period provided as per the statutory provisions and if they hold, then as per the statute, Interest must be payable to petitioner.