Rule 94 of CGST Rules 2017: Order Sanctioning Interest on Delayed Refunds

Provisions under Rule 94 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Order Sanctioning Interest on Delayed Refunds”, are as under:

CGST Rule 94: Order Sanctioning Interest on Delayed Refunds (Chapter-X: Refund) 

(1) Where any interest is due and payable to the applicant under section 56, the proper officer shall make an order along with a payment advice payment order 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. [Note 1 & 2(a)]

(2) The following periods shall not be included in the period of delay under sub-rule (1), namely:-

(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. [Note 2(b)]

Amendments History:

1. The text ‘payment advice’ substituted with the text ‘payment order’ vide Central Tax Notification 31/2019 dt. 28/06/2019, pending notification on effective date. Subsequently, 24/09/2019 has been notified as the effective date vide Notification 42/2019 Central Tax dt. 24/09/2019.

2. Amendments made vide vide Central Tax Notification 38/2023 dated 04/08/2023, effective October 1, 2023:

(a) rule 94 shall be renumbered as sub-rule (1); and

(b) sub-rule (2) inserted.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.