New Delhi: A Delhi High Court order has now made GST officers pull up their socks and act promptly while pointing out errors in claimed refunds. GST officers will now have only the stipulated 15 days to respond or pay interest along with the refund.
A petition had been filed with the court by Jian International, asking the court to direct the Commission of Delhi Goods (the respondent) to respond on the refund and interest on it, under the CGST Act, 2017. The application said that the deficiency in the refund application was pointed out too late to the applicant by the officials. The court agreed, and said that GST officers have no right to find a deficiency in refund application after 15 days.
The order was given by the division bench of Justices Manmohan and Sanjeev Narula. The bench said the respondent had lost the right to point out any deficiency in the petitioner’s refund application at this belated stage. Accordingly, the Court directed the respondent to pay to the petitioner the refund along with interest in accordance with law within two weeks.
The petitioner had submitted that, according to Section 54(6) read with Rule 91 of CGST Rules, 2017, the proper officer is required to refund at least 90 percent of the refund claimed on account of zero-rated supply of goods or services or both made by registered persons within 7 days from the date of acknowledgment issued under Rule 90.
The petitioner added that despite the period of 15 days from the date of filing of the refund application has expired, the respondent has to date neither pointed out any deficiency/discrepancy in FORM GST RFD-03 nor has it issued any acknowledgment in FORM GST RFD-02.
Not being satisfied with contentions of the petitioner the respondent authority submitted that a formal deficiency memo will have to be issued as certain documents though annexed with the writ petition had not been uploaded by the petitioner along with its refund application.
After hearing the contentions of the both sides the bench has observed that, “Rules 90 states that within 15 days from the date of filing of the refund application, the respondent has to either point out discrepancy/deficiency in FORM GST RFD-03 or acknowledge the refund application in FORM GST RFD-02.”
Read the judgment here;
Jain-International-Vs-Commissioner-of-delhi-Goods-and-Services-Tax– India Legal Bureau