Refunds

Order sanctioning interest on delayed refunds

Rule 94 of the CGST Rules

Chapter 10 – Refund Text as on 2026-09-05 Source CBIC

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Amendment history

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In one line

Interest on a delayed refund is sanctioned in RFD-05: six per cent generally and nine per cent where the refund follows an appellate or court order, running from sixty days after the application until payment.

The exact words of the law

1,224 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

Read the full provision+
Rule 94. Order sanctioning interest on delayed refunds.- 2 [(1)] Where any interest is due and payable to the applicant under section 56 , the proper officer shall make an order along with a 1 [payment order] in FORM GST RFD-05 , specifying therein the amount of refund which is delayed, the period of delay for which interest is payable and the amount of interest payable, and such amount of interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. 3 [

(2) The following periods shall not be included in the period of delay under sub-rule (1), namely:-
(a) any period of time beyond fifteen days of receipt of notice in FORM GST RFD-08 under sub-rule

(3) of rule 92, that the applicant takes to-
(i) furnish a reply in FORM GST RFD-09, or (ii) submit additional documents or reply; and
(b) any period of time taken either by the applicant for furnishing the correct details of the bank account to which the refund is to be credited or for validating the details of the bank account so furnished, where the amount of refund sanctioned could not be credited to the bank account furnished by the applicant.]

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2023-10-01 · Renumbered

38/2023-CTdated

Renumbered (w.e.f. 01.10.2023) vide Notification No. 38/2023 – CT dated 04.08.2023.

2023-10-01 · Inserted

38/2023-CTdated

Inserted (w.e.f. 01.10.2023) vide Notification No. 38/2023 – CT dated 04.08.2023.

2019-06-28 · Substituted

31/2019-CTdated

Substituted vide Notification No. 31/2019 – CT dated 28.06.2019 with effect from 24.09.2019 as notified by Notification No. 42/2019-CT dated 24.09.2019 for "payment advice".

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Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

rule 94order sanctioning interest on delayed refunds

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