TaxTMI 
TaxTMI 
Respected experts, I have a query. I am getting my GST cancelled. I have the opening balance in the march of 1.8Lakh approx.; but my GST was blocked by the officer in the April of Rs. 18.5 Lakh approx. I am unable to understand the situation. Till the ITC gets unblocked, the number will not be cancelled.
ITC Blocking and Cancellation of GST
14 May 2026 
4 Replies 
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Input tax credit blocking under Rule 86A cannot exceed ledger balance, and GST cancellation may proceed separately.
Blocking of input tax credit under Rule 86A is confined to the amount actually available in the Electronic Credit Ledger and cannot exceed the existing balance. Excess blocking requires reconciliation, verification of the blocking order, and rectification to the extent the restriction goes beyond available credit. Cancellation of GST registration is a separate proceeding and should not remain pending indefinitely merely because ITC has been blocked, since cancellation does not affect the taxpayer's underlying liability. (AI Summary)
Blocking of input tax credit under Rule 86A is confined to the amount actually available in the Electronic Credit Ledger and cannot exceed the existing balance. Excess blocking requires reconciliation, verification of the blocking order, and rectification to the extent the restriction goes beyond available credit. Cancellation of GST registration is a separate proceeding and should not remain pending indefinitely merely because ITC has been blocked, since cancellation does not affect the taxpayer's underlying liability. (AI Summary)