Restriction on electronic credit ledger: debit may be disallowed where input tax credit is fraudulently availed or ineligible. Rule 86A permits the Commissioner or an authorised officer, not below Assistant Commissioner, to disallow debit from the electronic credit ledger if there are reasons to believe-based on material evidence-that input tax credit has been fraudulently availed or is ineligible, on grounds such as invoices from non-existent suppliers, absence of receipt of goods or services, unpaid tax by supplier, claimant being non-existent, or lack of valid documents; the restriction must be proportionate, recorded in writing, communicated on the portal, and may be lifted on review.
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: debit may be disallowed where input tax credit is fraudulently availed or ineligible.
Rule 86A permits the Commissioner or an authorised officer, not below Assistant Commissioner, to disallow debit from the electronic credit ledger if there are reasons to believe-based on material evidence-that input tax credit has been fraudulently availed or is ineligible, on grounds such as invoices from non-existent suppliers, absence of receipt of goods or services, unpaid tax by supplier, claimant being non-existent, or lack of valid documents; the restriction must be proportionate, recorded in writing, communicated on the portal, and may be lifted on review.
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