Restriction on use of electronic input tax credit: authorities may block ledger debits where credit is fraudulently availed or unsupported. A new rule 86A authorises the Commissioner or an authorised officer to disallow debit of amounts in the electronic credit ledger where input tax credit appears fraudulently availed or ineligible, on grounds including documents issued by non existent suppliers, absence of receipt of goods or services, supplier non payment of tax, or absence of prescribed supporting documents; reasons must be recorded in writing, restrictions may be lifted when grounds cease to exist and expire after one year.
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Provisions expressly mentioned in the judgment/order text.
Restriction on use of electronic input tax credit: authorities may block ledger debits where credit is fraudulently availed or unsupported.
A new rule 86A authorises the Commissioner or an authorised officer to disallow debit of amounts in the electronic credit ledger where input tax credit appears fraudulently availed or ineligible, on grounds including documents issued by non existent suppliers, absence of receipt of goods or services, supplier non payment of tax, or absence of prescribed supporting documents; reasons must be recorded in writing, restrictions may be lifted when grounds cease to exist and expire after one year.
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