GST Refund Delays and How Taxpayers Can Address Them 1. Reasons for GST Refund Delays: - Errors or discrepancies in the refund application. - Incomplete or insufficient supporting documents. - Technical glitches in the GST portal. - Manual processing delays by tax authorities. - Non-compliance with timelines for filing refund claims. 2. Types of Refunds Eligible for Claims: - Export of goods or services (with or without payment of IGST). - Excess balance in the electronic cash ledger. - Refund due to inverted duty structure. - Refunds related to deemed exports. - Refunds on account of provisional assessment or appeal orders. 3. Process for Addressing Refund Delays: - Regularly check the status of the refund application on the GST portal. - Respond promptly to any deficiency memo or queries raised by tax authorities. - Rectify any errors in the application and refile if required. 4. Remedy for Delayed Refunds: - Interest on Delayed Refunds: If the refund is not credited within 60 days from the date of receipt of a complete application, the taxpayer is entitled to interest at a specified rate (usually 6% per annum). - Filing Complaints: Taxpayers can file complaints through the GST portal’s grievance redressal mechanism or contact the jurisdictional GST officer. - Appeals: If the refund is unjustly withheld or rejected, taxpayers can file an appeal before the appellate authority under GST law. 5. Preventive Measures: - Ensure all details are accurate and documents are complete while filing a refund claim. - Keep proper records of invoices, export documents, and other relevant documents. - Regularly track the refund status and respond promptly to any notices.

Dear Client, Yes, GST refunds can be delayed due to procedural lapses, errors in filings, verification delays, or mismatches in return data. Here's how the issue is handled: Legal Provisions: Section 54 of the CGST Act, 2017 deals with refunds. Refunds must be processed within 60 days from the date of application. Interest at 6% per annum is payable to the taxpayer if delayed beyond 60 days (Section 56, CGST Act). Remedies Available: File online grievances on the GST portal (GSTN Helpdesk or CBIC's CPGRAMS). Approach the jurisdictional GST officer for escalation. If not resolved, file a writ petition in High Court for inordinate delays violating statutory time limits. In some cases, courts (e.g., Kabeer Reality Pvt. Ltd. v. Union of India, Gujarat HC, 2022) have directed refunds with interest for delay. I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.