CGST Rule 94: Order Sanctioning Interest on Delayed Refunds

Provisions under Rule 94 of CGST Rules, 2017 relating to “Order Sanctioning Interest on Delayed Refunds”:

CGST Rule 94: Order Sanctioning Interest on Delayed Refunds (Chapter X: Refund) [*1]

(1) [*3(a)] Where any interest is due and payable to the applicant under section 56, the proper officer shall make an order along with a payment order [*2] in FORM GST RFD 05, specifying therein the amount of refund which is delayed, the period of delay for which interest is payable and the amount of interest payable, and such amount of interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.

(2) The following periods shall not be included in the period of delay under sub-rule (1), namely: –[*3(b)]

(a) any period of time beyond fifteen days of receipt of notice in FORM GST RFD-08 under sub-rule (3) of rule 92, that the applicant takes to-

(i) furnish a reply in FORM GST RFD-09, or

(ii) submit additional documents or reply;

and

(b) any period of time taken either by the applicant for furnishing the correct details of the bank account to which the refund is to be credited or for validating the details of the bank account so furnished, where the amount of refund sanctioned could not be credited to the bank account furnished by the applicant.

Notes (History of Amendments in Bare Text):

1. CGST Rule 94 introduced vide Notification 10/2017, effective 01/07/2017.

2. The text “payment advice” substituted with the text “payment order” [now forming part of sub-rule (1)] vide Notification 31/2019, followed with notification on commencement date of 24/09/2019 vide 42/2019.

3. Amendments from 01/10/2023 vide Notification 38/2023:

(a) Rule 94 renumbered as sub-rule (1) of Rule 94.

(b) Sub-rule (2) inserted.