Section 56 of the CGST Act, 2017--- Interest on Refund —- The petitioner sought refund. The court observed that the only reason the respondents denying grant of statutory interest to the petitioner, is because Covid-19 was raging and there was delay in processing the petitioner’s refund. The petitioner contended that when the respondents were doing so, they should have also granted statutory interest in accordance with provisions of Section 56 of the Act. The court observed that the principal amount towards refund was released in two tranches. The interest is payable to the petitioner. The statutory rate of interest provided under Section 56 of the Act is a compensation for use of money.

Held that:- The Hon’ble High Court directed the respondents to pay to the petitioner at the statutory rate as prescribed in Section 56 of the Act. Listed the matter for compliance on 04.08.2022.