GSTAT says Erroneous ITC Refund Can Attract Interest Under Section 73

Hindalco had received an inverted-duty refund of ₹90.36 lakh in 2019, which was subsequently treated as erroneous after application of the Rule 89(5) formula upheld in VKC Footsteps. GSTAT held that Section 73 can independently address an erroneous refund even where the original RFD-06 was not first reversed under Sections 107(2) or 108, and that Sections 73 and 50 together provide the statutory basis for interest.