Condition and Restriction of utilisation of E-Credit Ledger

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.