Inadvertent GST ECL Deposit by ISD Refundable with Interest: Delhi HC orders Refund with 6% Interest, Warns 18% for Delay

Delhi HC orders 6% interest on inadvertent GST ECL deposit refund, warning of 18% for delays. The Delhi High Court directed the Goods and Services Tax (GST) Department to refund an amount of ₹3.3 crore that was mistakenly deposited in the Electronic Cash Ledger (ECL) by an Input Service Distributor (ISD), along with 6% interest. The court found that the department had unlawfully retained the amount by failing to issue a deficiency memo within the stipulated 15-day period. While interest was denied for the period the refund application was withdrawn, the court warned that 18% interest per annum would apply from June 1, 2025, if the refund is further delayed, emphasizing principles of unjust enrichment and timely tax administration.