Refund interest claims under GST must be decided by the competent sanctioning authority within a reasonable time.

The competent refund sanctioning authority for registered taxable persons in the relevant jurisdiction was clarified as the Deputy Commissioner of State Tax, Panaji Ward, and applications for interest on delayed refund under Section 56 of the CGST Act, 2017 must be considered by that authority. An online application filed under the procedure referred to in the 18.11.2019 circular was required to be disposed of by the competent authority. The authority was directed to examine and decide the petitioner's interest claim within eight weeks, securing timely determination of refund-related interest under the CGST framework.

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Issues: Whether the Deputy Commissioner of State Tax, Panaji Ward was the authority competent to consider the petitioner's application for interest on delayed refund under Section 56 of the CGST Act, 2017, and whether a direction was warranted for expeditious decision on the application.

Analysis: The clarification received from the Chief Secretary stated that the Deputy Commissioner of State Tax, Panaji Ward is the refund sanctioning authority for registered taxable persons within the said jurisdiction. On that basis, the Court treated the position as settled and linked the petitioner's claim for interest on delayed refund to the statutory framework governing such refund-related interest. The Court also noted that the application had been filed online in terms of the procedure referred to in the circular dated 18.11.2019 and required disposal by the competent authority.

Conclusion: The Deputy Commissioner of State Tax, Panaji Ward was directed to consider and decide the petitioner's application for interest on delayed refund in accordance with Section 56 of the CGST Act, 2017 within eight weeks.

Final Conclusion: The petitioner obtained a direction securing determination of the refund-interest claim by the competent state tax authority, and the writ petition was disposed of on that basis.

Ratio Decidendi: Where the competent refund sanctioning authority is clarified by the State, an application for interest on delayed refund under the CGST regime must be considered and decided by that authority within a reasonable time.

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