Electronic credit ledger blocking under Rule 86A requires recorded reasons, material evidence, and strict limits on ineligible input tax credit. Guidelines are issued for disallowing debit of an electronic credit ledger under Rule 86A where input tax credit is believed to be fraudulently availed or ineligible. The power may be used only on recorded reasons based on material evidence, for specified grounds such as non-existent suppliers, non-receipt of goods or services, unpaid tax, absence of business activity, or absence of valid invoice documents. The instruction also specifies competent officers, monetary limits, procedure for blocking credit, and release of the restriction when the disqualifying conditions no longer exist, subject to a maximum period of one year.
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.
Electronic credit ledger blocking under Rule 86A requires recorded reasons, material evidence, and strict limits on ineligible input tax credit.
Guidelines are issued for disallowing debit of an electronic credit ledger under Rule 86A where input tax credit is believed to be fraudulently availed or ineligible. The power may be used only on recorded reasons based on material evidence, for specified grounds such as non-existent suppliers, non-receipt of goods or services, unpaid tax, absence of business activity, or absence of valid invoice documents. The instruction also specifies competent officers, monetary limits, procedure for blocking credit, and release of the restriction when the disqualifying conditions no longer exist, subject to a maximum period of one year.
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