The Department has blocked ITC on 26-01-2020 without any communication and even after 1 year the ITC is not unblocked. There have numerous exchange off letters with reconciliation statements and documentary evidence for the ITC availed since then with the Jurisdictional Deputy Commissioner of Central Tax & C.Ex. Division, in this respect.
What is the Legal action that can be pursued to get the ITC unblocked which otherwise causes great hardship in cash flow?
Please given your valuable advice and guidance.
Participant Faces ITC Blockage Since 2020 Due to GSTR-3B Error; Advised to Escalate with Complete Documentation A participant raised a query about the blockage of their Input Tax Credit (ITC) by the tax department since January 2020 without any communication, causing financial strain. The issue arose from an error in filing the GSTR-3B Return, leading to discrepancies in ITC claims. Respondents advised against immediate legal action, suggesting polite communication and escalation to higher authorities, including the Commissioner, to resolve the issue. They emphasized the importance of providing complete documentation and meeting with officials to clarify the situation. The participant expressed gratitude for the guidance and planned to follow the suggested steps. (AI Summary)
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