Case Law Details
SBI Cards & Payment Services Limited Vs Union Of India & Others (Punjab and Haryana High Court)
HC allows interest on GST refund from date immediately after expiry of sixty days from GST refund application date
The Punjab and Haryana High Court recently deliberated on the entitlement of interest on GST refunds in the case of SBI Cards & Payment Services Limited vs Union of India & Others. The petitioner sought the quashing of an order rejecting their interest claim and mandamus to sanction the interest amount. Here’s a detailed analysis of the case.
Analysis: The petitioner filed a writ petition challenging the rejection of their interest claim on a GST refund. They argued that the rejection was arbitrary and against the provisions of Section 56 of the Central Goods and Service Tax Act, 2017 (CGST Act).
Section 56 of the CGST Act stipulates that if any tax ordered to be refunded is not refunded within sixty days from the date of receipt of the application, interest shall be payable. The petitioner contended that interest should accrue from the date of the original application, not from the date of a subsequent refund application, as argued by the respondents.
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