Restriction on electronic credit ledger use where input tax credit appears fraudulently availed, limiting debit for liabilities and refunds. A new rule 86A allows the Commissioner or an authorised officer to withhold debit from the electronic credit ledger where there is reasoned belief that input tax credit was fraudulently availed or is ineligible - including where suppliers are non-existent, goods or services were not received, tax on the supply was not paid to government, the claimant lacks prescribed documents, or the claimant is non-existent - and to disallow such debit for discharge of liabilities under section 49 or for refund claims; the restriction may be lifted when conditions cease and expires automatically after one year.
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Restriction on electronic credit ledger use where input tax credit appears fraudulently availed, limiting debit for liabilities and refunds.
A new rule 86A allows the Commissioner or an authorised officer to withhold debit from the electronic credit ledger where there is reasoned belief that input tax credit was fraudulently availed or is ineligible - including where suppliers are non-existent, goods or services were not received, tax on the supply was not paid to government, the claimant lacks prescribed documents, or the claimant is non-existent - and to disallow such debit for discharge of liabilities under section 49 or for refund claims; the restriction may be lifted when conditions cease and expires automatically after one year.
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