Page 317 - CA Final GST

Badlani Classes

Utilization of Fund [Section 58]: All sums credited to the Fund shall be utilized by the
Government for the welfare of the consumers in such manner as may be prescribed. The
government or the authority specified by it shall maintain proper and separate account
and other relevant records in relation to the Fund and prepare an annual statement of
accounts in such form as may be prescribed in consultation with the Comptroller and
Auditor-General of India.
Que. 1 Interest on delayed refund M/s RLL Ltd. filed an application for refund of tax
amounting `5,00,000 on 01-10-2017. The refund was granted on 25-12-2017.
Compute the amount of interest, if any payable to RLL Ltd. as per provisions of
Section 56 of the CGST Act, 2017
Ans. If any tax ordered to be refunded u/s 54(5) to any applicant, and such tax is not refunded
within 60 days from the date of receipt of application u/s 54(1), interest at @ 6% p.a.
shall be payable in respect of such refund from the date immediately after the expiry of
60 days from the date of receipt of application till the date of refund of such tax.
The relevant computation is as follows (amounts in `)-
Amount of refund [A] 5,00,000
Date of making application [B] 01-10-2017
60 days period from the date of application [C] = [B]+60 days 30-11-2017
expires on-
Date of making refund [D] 25-12-2017
No. of days for which interest to be granted [E]=[D]-[C] 25
Interest on refund @ 6% [A]x[E]x6%÷365 2,055

Que. 2 Interest on delayed refund M/s RLL Ltd. filed an application for refund of tax
amounting `10,00,000 on 01-10-2017. The refund was granted on 25-01-2018.
Compute the amount of interest, if any payable to RLL Ltd as per provisions of
Section 56 of the CGST Act, 2017.
Ans. If any tax ordered to be refunded under section 54(5) to any applicant, and such tax is not
refunded within 60 days from the date of receipt of application under section 54(1),
interest at @ 6% p.a. shall be payable in respect of such refund from the date immediately
after the expiry of 60 days from the date of receipt of application till the date of refund of
such tax.

The relevant computation is as follows (amounts in `)

Amount of refund [A] 10,00,000
Date of making application [B] 01-10-2017
60 days period from the date of application [C] = [B]+60 days 30-11-2017
expires on-
Date of making refund [D] 25-01-2018
No. of days for which interest to be granted [E]=[D]-[C] 56

Interest on refund @ 6% [A]x[E]x6%÷365 9,205

Page316

Central Goods & Services Tax Act, 2017