Summary
- The Supreme Court of India has clarified that interest on statutory pre-deposit refunds under Section 115 of the CGST Act is mandatory from the date of payment, not subject to a 60-day delay.
- In the case of State of Jharkhand v. BLA Infrastructure Pvt. Ltd. (2026), the Court established that such refunds are a vested right, independent of Section 54's limitations.
- This ruling emphasizes that taxpayers are entitled to claim interest automatically without needing a separate application, reinforcing their financial rights post-appeal.
- Tax professionals must adapt their practices to ensure compliance with this interpretation and protect clients' interests in GST matters.
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