Section 56 CGST Act 2017 – Interest on delayed refunds.

By | April 17, 2017
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(Last Updated On: May 28, 2018)

Section 56 CGST Act 2017

[ Section 56 CGST Act 2017 Notified w.e.f 01.07.2017 vide Notification No. 9/2017 – Central Tax Dated 28th June, 2017 ]

Section 56 CGST Act 2017 explains Interest on delayed refunds  and is covered in Chapter XI – Refunds 

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

Interest on delayed refunds.

56. 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 sub-section (1) of that section, interest at such rate not exceeding six per cent as may be specified in the notification [ Note- 1 ,1A, 3 ] 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 [ Note -2 , 4 ] 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).


Note :-

1 .6% Rate of Interest under  section 56 prescribed under CGST Act 2017 by Notification No. 13/2017 – Central Tax Dated 28th June, 2017

1A 6% rate of interest under section 56 of CGST Act, 2017 Notification No. 6/2017 – Integrated Tax Dated 28th June, 2017 

2. 9% Rate of Interest under proviso to section 56 prescribed under CGST Act 2017 by Notification No. 13/2017 – Central Tax Dated 28th June, 2017

2A 9% rate of interest under provisio  section 56 of CGST Act, 2017 Notification No. 6/2017 – Integrated Tax Dated 28th June, 2017 

3. 6% Rate of Interest under  section 56 prescribed under UTGST Act 2017 vide Notification No. 10/2017 – Union Territory Tax Dtd 30th June, 2017

4. 9% Rate of Interest under proviso to section 56 prescribed under UTGST Act 2017 vide Notification No. 10/2017 – Union Territory Tax Dtd 30th June, 2017

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