GSTAT Vijayawada says Delayed Refund Interest Runs from Original Application and Not Consequential Application

The GST Appellate Tribunal, Vijayawada, held that where an original refund claim is rejected but the rejection is subsequently set aside in appeal, the taxpayer's entitlement to ordinary interest under Section 56 must be reckoned from the original refund application. The Department cannot deny interest for the intervening period merely because the principal refund was sanctioned within sixty days of a consequential application filed to implement the appellate order. The Tribunal clarified that ordinary interest at the notified rate of 6% per annum and enhanced interest at 9% under the proviso to Section 56 operate for distinct periods. The entitlement remains subject to verification that the original refund application was complete in all respects and satisfied the statutory conditions.