Disposal of refunds within stipulated time framework and payment of interest amount on delayed refunds

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....nd other practitioners, so that a robust mechanism is put in place for timely disposal of refund claims. The minutes of meeting held on 16-6-2022 in compliance to aforesaid directions, has already been issued and circulated to all stakeholders. 2. The disposal of refund applications in a time bound manner is an integral part of the VAT/GST mechanism. In this regard, attention is drawn to Section 38 of Delhi Value Added Tax Act, 2004 and Section 56 of the DGST Act as per which, if any tax is to be refunded under sub-section 5 of Section 54 but is not refunded within 60 days from the receipt of application under sub-section (1) of that section, interest at such rates not exceeding six percent as may be specified in the notification issu....

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.... before the expiry of two years from the relevant date. The proper officer shall issue the order within sixty days from the date of receipt of application, else interest at the rate not exceeding 6% shall be payable on such refund application. 3. It has been observed that many refund cases are still pending in the Wards beyond the permissible time limit. In this regard Department has been issuing Circulars from time to time for disposal of the refund application in a time bound manner. Some of the taxpayers have also approached the Hon'ble High Court with their grievances and the Hon'ble Court has highlighted the need to decide the applications within statutory time lines. It is therefore incumbent upon the concerned officers to ensur....