In Brief
Two exporters challenged GST authorities' delayed refunds. They sought interest at 9% per annum on the delayed amounts, while the government contended only 6% was payable. The Supreme Court held that since the refund claims did not arise from an order of an adjudicating or appellate authority, the principal provision of Section 56 of the CGST Act applied, prescribing 6% interest. The 9% rate under the statute's proviso applies only where the refund claim emerges from a formal adjudicatory order. The Court found the High Court erred in awarding 9% and directed interest at 6% per annum, which had already been paid to the exporters.
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