GST Update

Desk of CA. Praveen Sharma – 861 Series (CAPS)

Delhi High Court in the case of Gameloft Software Private Limited

Petition Filed: The petitioner sought directions under Articles 226 and 227 for expeditious disposal of refund applications for excess IGST paid (?1.87 crore) for April 2019–June 2020.

Refund Applications: Filed in April 2022 and rejected in July 2022 for deficiencies. Revised applications were filed in March 2023 but no deficiency memo was issued within 15 days as required under Rule 90.

Department’s Action: A deficiency memo was later issued on 11 April 2023 with vague remarks of “supporting documents incomplete,” leading to delay despite repeated representations.

Legal Reference: The Court cited earlier judgments explaining refund processing timelines and interest liability under Sections 54 and 56 of the CGST Act.

Interest on Delayed Refunds:

• 6% interest after 60 days from the initial refund application.

• 9% interest if refund remains unpaid after 60 days of an appellate or court order.

Deficiency Memo Timing: Since no deficiency memo was issued within 15 days, the delay was attributed to the department, entitling the petitioner to interest for the delayed period.

Court Directions: The petitioner must appear before the Department on 10 November 2025. The Department was directed to finalize refund orders within one month after clearing pending deficiencies.

Conclusion: The petition was disposed of with directions for timely refund and interest payment; all other rights and remedies were kept open

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS