Restriction on electronic credit ledger use limits e-credit for high-value monthly suppliers unless verifications or exemptions apply. A tax officer authorised by the Commissioner may bar debit from the electronic credit ledger if input tax credit appears fraudulently or ineligible-instances include invoices from non-existent suppliers, lack of receipt of goods or services, supplier non-payment of tax, recipient non-existence, or absence of prescribed documents. The prohibition must be reasoned, can be revoked once conditions cease, and lapses after one year. Separately, taxpayers exceeding a high-value monthly taxable-supply threshold must fund a portion of output tax other than from the electronic credit ledger, subject to specified exceptions and possible removal of the restriction after verification.
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 use limits e-credit for high-value monthly suppliers unless verifications or exemptions apply.
A tax officer authorised by the Commissioner may bar debit from the electronic credit ledger if input tax credit appears fraudulently or ineligible-instances include invoices from non-existent suppliers, lack of receipt of goods or services, supplier non-payment of tax, recipient non-existence, or absence of prescribed documents. The prohibition must be reasoned, can be revoked once conditions cease, and lapses after one year. Separately, taxpayers exceeding a high-value monthly taxable-supply threshold must fund a portion of output tax other than from the electronic credit ledger, subject to specified exceptions and possible removal of the restriction after verification.
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