The Government of NCT of Delhi, Department of Trade and Taxes (Policy Branch) has issued Instruction F.3(659)/GSTP&R/2026/125 dated 13.03.2026, directing strict compliance with statutory timelines for processing and disposal of refund claims under GST and DVAT laws. The instructions have been issued in light of continued delays in refund processing and observations made by the Hon’ble Delhi High Court in various cases concerning delayed refunds and non-payment of interest.
It has been noted by the department that despite issuance of earlier circulars and detailed guidelines prescribing procedures and timelines for refund processing, a significant number of cases remain pending beyond the stipulated time limits. Such delays have resulted in grievances and litigation, thereby necessitating strict enforcement of existing provisions. Accordingly, all concerned officers have been directed to ensure time-bound disposal of refund claims strictly within statutory timelines and in accordance with departmental guidelines.
The instructions further emphasize that Ward In-charges and Proper Officers must actively monitor the pendency of refund applications in their respective jurisdictions and take necessary steps to clear backlog cases. Any deviation from prescribed timelines or laxity in processing refund claims will be viewed seriously, and officers responsible for such delays may face administrative action.
The document also reiterates earlier orders and circulars, which mandate time-bound verification and sanction of refunds, including compliance with provisions relating to payment of interest in cases of delayed refunds under DVAT and GST laws. Officers have been instructed to ensure that refunds are processed only after due verification but without causing unnecessary delays, thereby balancing compliance with efficiency.
In addition, the department has strengthened monitoring and grievance redressal mechanisms. As highlighted, a Refund Grievance Redressal Portal has been introduced to enable taxpayers to raise issues relating to pending refund applications. The system requires timely disposal at ward level, regular reporting by zonal officers, and weekly monitoring by senior officers to ensure accountability and transparency in the process.
These instructions, issued with the approval of the Commissioner, Trade and Taxes, aim to streamline refund processing, reduce litigation, and enhance taxpayer confidence by ensuring timely disbursal of legitimate refunds and strengthening administrative oversight.
The Instructions can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Delhi-SGST-instruction_0.pdf
