Delhi High Court directs GST authorities to release refunds or pay refund with interest
- Oct 19, 2020 | Divita S Gupta
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.