GST
Final refund order and interest for delay
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Facts
Under Sec 54(7), the final order in RFD-06 must be issued within 60 days of a complete application. If the refund is not paid within 60 days, Sec 56 entitles you to interest at 6 percent a year from the day after the 60 days until payment.
Provisions and law
- Sec 54(7), CGST Act 2017Refund order within 60 days of a complete application
- Sec 56, CGST Act 2017Interest to the taxpayer if a refund is not paid within 60 days
- Rule 92, CGST Rules 2017Final refund order RFD-06, adjustment RFD-07 and notice RFD-08
Analysis
On a refund of ₹8,00,000 paid 40 days late, interest at 6 percent is about ₹5,260. Interest is sanctioned through the system but often needs a follow-up. Keep the dates of filing, RFD-02 and payment so you can show the delay.
Conclusion
- Note the date the application was complete (RFD-02 date)
- Track RFD-06 and RFD-05 payment advice
- If paid late, check that interest has been included
- Write to the officer for interest if it is missing
A Savvy can do this for you
Refund of ITC on exports without payment of tax, RFD-01
₹4,999
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