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Delhi High Court directs GST authorities to release refunds or pay refund with interest

  • Oct 19, 2020 | Divita S Gupta

Delhi High Court directs GST authorities to release refunds or pay refund with interest

The Delhi High Court has directed GST authorities to act promptly while pointing out errors in claimed refunds. They will have two weeks to point out a deficiency in a refund application failing which they will need to release refunds along with interest. A petitioner had approached the Delhi High Court after a deficiency in the refund application was pointed out far too late by GST officials. As per CGST Rules, GST authorities are required to refund at least 90% of the refund claimed on zero-rated supplies made by registered persons within 7 days from the date of acknowledgement. However, GST authorities failed to clear the funds even after a 15 day period and didn't point out any discrepancy in FORM GST RFD-03 nor did they issue any acknowledgement in FORM GST RFD-02. The Delhi HC stated that Rule 90 states that within 15 days from the date of filing of the refund application, the respondent has to either point out discrepancy/deficiency in FORM GST RFD-03 or acknowledge the refund application in FORM GST RFD-02. The HC ordered GST authorities to pay the petitioner the refund along with interest in accordance with law within two weeks.


Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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