THE CENTRAL GOODS AND SERVICES TAX ACT,
2017
REFUNDS
Section 56:
Interest on delayed refunds.
(Relevant Rule 94)
If any tax ordered to be refunded under sub-section (5) of
section 54
to any applicant is not refunded within sixty days from the date of receipt of
application under subsection (1) of that section, interest at such rate not
exceeding six per cent. as may be specified in the notification issued by the
Government on the recommendations of the Council shall be payable in respect of
such refund from the date immediately after the expiry of sixty days from the
date of receipt of application under the said sub-section till the date of
refund of such tax:
Provided that where any claim of refund
arises from an order passed by an adjudicating authority or Appellate Authority
or Appellate Tribunal or court which has attained finality and the same is not
refunded within sixty days from the date of receipt of application filed
consequent to such order, interest at such rate not exceeding nine per cent. as
may be notified by the Government on the recommendations of the Council shall
be payable in respect of such refund from the date immediately after the expiry
of sixty days from the date of receipt of application till the date of refund.
Explanation.––For the purposes of
this section, where any order of refund is made by an Appellate Authority,
Appellate Tribunal or any court against an order of the proper officer under
sub-section (5) of
section 54, the order passed by the Appellate Authority,
Appellate Tribunal or by the court shall be deemed to be an order passed under
the said sub-section (5).