Order sanctioning interest on delayed refunds
Rule 94 of the CGST Rules
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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, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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".
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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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