Delhi High Court Orders 6%/9% Interest on Delayed GST Refunds Due to Procedural Lapses

• The Delhi High Court ruled that the taxpayer is entitled to interest on delayed GST refunds due to the late issuance of a deficiency memo.
• Interest is set at 6 percent per annum from the first refund application date until the second application, excluding the 74 days taken by the taxpayer to respond.
• Interest increases to 9 percent per annum after 60 days from the second application.
• The Revenue must pay interest at 6 percent initially and 9 percent thereafter, adjusting for any interest already paid.
• The refund was processed only after an Appellate Authority’s direction, not proactively by the Revenue, and without full interest payment despite a previous court order.
• The Court highlighted procedural lapses by the Revenue in issuing deficiency memos and provided a flow chart for calculating interest on delayed refunds.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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