Supreme Court: GST Dept Cannot Block ITC Beyond Available Credit Under Rule 86A - SAG Infotech Official Tax Blog

The Case The dispute concerns the scope of powers granted to GST authorities under Rule 86A of the Central Goods and Services Tax (CGST) Rules, 2017, to block the utilisation of Input Tax Credit (ITC) available in a taxpayer’s Electronic Credit Ledger (ECL). The taxpayers challenged the tax authorities’ action of blocking an amount that exceeded the actual ITC balance available in the ledger. This…