Restriction on electronic credit ledger use where input tax credit appears fraudulent, suspending debit for liabilities or refunds. The rules substitute twenty percent with ten percent in rule 36 effective from 1 January 2020 and insert Rule 86A empowering the Commissioner or an authorised officer to disallow debit from the electronic credit ledger where input tax credit appears fraudulently availed or ineligible on specified grounds (non existent suppliers, no receipt of goods/services, tax on supply unpaid, claimant non existent, or absence of prescribed documents); the officer may later allow debits if satisfied and any restriction expires after one year. Rule 138E is expanded to cover failure to furnish outward supply statements for two months or quarters.
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 where input tax credit appears fraudulent, suspending debit for liabilities or refunds.
The rules substitute twenty percent with ten percent in rule 36 effective from 1 January 2020 and insert Rule 86A empowering the Commissioner or an authorised officer to disallow debit from the electronic credit ledger where input tax credit appears fraudulently availed or ineligible on specified grounds (non existent suppliers, no receipt of goods/services, tax on supply unpaid, claimant non existent, or absence of prescribed documents); the officer may later allow debits if satisfied and any restriction expires after one year. Rule 138E is expanded to cover failure to furnish outward supply statements for two months or quarters.
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