In the case of M/s. Saraf Natural Stone Vs Union Of India, the Gujarat High Court has passed the judgement that Department will have to pay simple interest at the rate of 9% per annum on the delayed payment of IGST to the exporter.
Ever since the launch of GST, the problem of delay in refund of IGST to the exporters has been very common, which in many cases resulted into the lack of working capital, negatively affecting the export business.
According to the High Court ruling, the said interest must be paid from the actual date of filing of GSTR-3B return to the date of receipt of refund.
“The provisions relating to an interest of delayed payment of refund have been consistently held as beneficial and non-discriminatory. It is true that in the taxing statute the principles of equity may have little role to play, but at the same time, any statute in taxation matter should also meet with the test of the constitutional provision,” added the High Court in its statement.
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The court order has reportedly been welcomed by the exporter community, including the exporters who refund got delayed. These exporters will now be able to claim interest at the rate of 9% on the refund amount against GSTR-3B return which was filed earlier.
