Is interest payable on delayed GST refunds?
Yes, in many jurisdictions, including India, interest may be payable on delayed GST (Goods and Services Tax) refunds. When a taxpayer is eligible for a refund of excess input tax credit or other refundable amounts under GST but experiences a delay in receiving the refund, interest may accrue on the delayed amount.
The interest provisions for delayed refunds are typically outlined in the GST laws and regulations of the respective country. These provisions may specify the rate of interest, the period for which interest is payable, and the conditions under which interest is applicable.
In the Indian GST system, for example, interest on delayed refunds is addressed under Section 56 of the Central Goods and Services Tax (CGST) Act, 2017. If the refund is not granted within 60 days from the date of receipt of the refund application, interest is payable to the taxpayer. The interest rate is determined as per the provisions of the law.
It’s important for taxpayers to be aware of the specific rules and regulations related to interest on delayed GST refunds in their jurisdiction, as these may vary. Consulting with a tax professional or referring to the official guidelines provided by the tax authorities is recommended for accurate and up-to-date information.