Blocking of Credit: Immediate suspension and cancellation procedures to curb GST input tax credit fraud. Procedures require rapid verification of intelligence and preparation of a case file within three days, followed by authorized inspection, search and seizure and completion of inspection report within fifteen days. Where evidence shows bill trading and fraudulent ITC, officers must promptly initiate show cause for ab initio cancellation of registration, block Electronic Credit Ledger balances under Rule 86A, identify suppliers and beneficiaries, and pursue adjudication, tax determination and penalties with well reasoned orders within prescribed timelines to prevent automatic unblocking.
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.
Blocking of Credit: Immediate suspension and cancellation procedures to curb GST input tax credit fraud.
Procedures require rapid verification of intelligence and preparation of a case file within three days, followed by authorized inspection, search and seizure and completion of inspection report within fifteen days. Where evidence shows bill trading and fraudulent ITC, officers must promptly initiate show cause for ab initio cancellation of registration, block Electronic Credit Ledger balances under Rule 86A, identify suppliers and beneficiaries, and pursue adjudication, tax determination and penalties with well reasoned orders within prescribed timelines to prevent automatic unblocking.
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