Restriction on electronic credit ledger debits to prevent fraudulently availed or ineligible input tax credit, with procedural safeguards. Rule 86A permits the Commissioner or an authorised officer to disallow debit of amounts from the electronic credit ledger where there are reasons to believe input tax credit was fraudulently availed or is ineligible on specified grounds (non-existent suppliers, non-receipt of goods/services, tax not paid to Government, claimant non-existent, or absence of documents). The officer must objectively evaluate evidence, record written reasons, limit the blocked amount to the prima facie ineligible credit, notify the registered person on the portal, and may restore credit if satisfied of eligibility; the restriction is time-limited.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restriction on electronic credit ledger debits to prevent fraudulently availed or ineligible input tax credit, with procedural safeguards.
Rule 86A permits the Commissioner or an authorised officer to disallow debit of amounts from the electronic credit ledger where there are reasons to believe input tax credit was fraudulently availed or is ineligible on specified grounds (non-existent suppliers, non-receipt of goods/services, tax not paid to Government, claimant non-existent, or absence of documents). The officer must objectively evaluate evidence, record written reasons, limit the blocked amount to the prima facie ineligible credit, notify the registered person on the portal, and may restore credit if satisfied of eligibility; the restriction is time-limited.
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