Act for the GST Refund Claims within 15 Days or Pay Interest: Delhi HC

The Delhi High Court has ordered the GST (Goods and Services Tax) officials to act upon the refund claims of the assessees within 15 days or pay the claims of the assessee along with an interest. The high court asked the officials to do so pointing out the errors in the GST refund claims Get to know about official GST refund process under GST regime as finalized by the GST Council. We have included terms and conditions of all aspects. Petitioner Jian International raised an issue with the high court demanding that the High Court should ask the officials to pass the refund claims along with interest under the GST Act 2017. The petitioner’s application stated that the officials made a delay in showing that there was a deficiency of facts in the refund claimed by the assessee. The High Court found the petition of the assessee to be noteworthy and said that the officials do not have the right to point out the deficiency in the claim after 15 days.

The bench of High Court, with Justices Manmohan and Sanjeev Narula as the members, gave the ruling and said that the respondent had lost the right to point out the deficiency of facts after 15 days of submission of a refund claim application. The bench ordered the respondent to settle the refund claims along with an interest within two weeks.

The petitioner’s application read that under Section 54(6) read with Rule 91 of CGST Rules, 2017, he was liable to receive at least 90% of the GST refunds for the supply of zero-rated goods, by any assessee registered under GST ActGet to know the complete GST registration procedure online on the Indian government GST portal official website. We have explained by the actual screenshot of every step 2017, within 7 days from the date of acknowledgement under Rule 90. The application further read that despite of expiry of the period of 15 days, the officials have failed to point out the deficiency of facts under FORM GST RFD-03 and/or have failed to acknowledge the claims under FORM GST RFD-02. The respondent had later submitted a writ application against the petitioner stating that there has been a deficiency of facts in the claim raised by the petitioner.

After hearing the arguments of both parties the High Court ruled, “Rules 90 states that within 15 days from the date of filing of the refund application, the respondent has to either point out discrepancy/deficiency in FORM GST RFD-03 or acknowledge the refund application in FORM GST RFD-02.”