Restrictions on electronic credit ledger use allow tax authorities to block debits where input tax credit appears fraudulent or ineligible. An amendment lowers the prescribed proportion in rule 36 and adds a new rule empowering a Commissioner-level officer to prohibit debit from the electronic credit ledger where input tax credit is suspected as fraudulently availed or ineligible-including credits based on documents from non-existent suppliers, without receipt of goods or services, where tax charged was not paid, or where required documents are absent-and to restore debits once conditions no longer exist; such restrictions expire after one year. The rules also classify failure to furnish outward supply statements for two tax periods as non-compliance under return-filing provisions.
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Provisions expressly mentioned in the judgment/order text.
Restrictions on electronic credit ledger use allow tax authorities to block debits where input tax credit appears fraudulent or ineligible.
An amendment lowers the prescribed proportion in rule 36 and adds a new rule empowering a Commissioner-level officer to prohibit debit from the electronic credit ledger where input tax credit is suspected as fraudulently availed or ineligible-including credits based on documents from non-existent suppliers, without receipt of goods or services, where tax charged was not paid, or where required documents are absent-and to restore debits once conditions no longer exist; such restrictions expire after one year. The rules also classify failure to furnish outward supply statements for two tax periods as non-compliance under return-filing provisions.
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