https://www.taxtmi.com/caselaws?id=418592 Gujarat HC ruled that Rule 86A of GST Rules only allows provisional restriction of existing input tax credit in electronic credit ledger, not permanent recovery or negative blocking for future credits. The court held that Rule 86A requires available credit alleged to be fraudulent and cannot create negative blocks. The provision is harsh and must be strictly interpreted, being anterior to assessment finalization. HC directed withdrawal of negative blocks and refund of Rs. 20 lakh deposited by petitioners within two weeks, emphasizing that permanent recovery requires following statutory procedures under Sections 73-74 of CGST Act. en-us Thu, 03 Feb 2022 00:00:00 +0530 Tue, 01 Apr 2025 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418592 Gujarat HC ruled that Rule 86A of GST Rules only allows provisional restriction of existing input tax credit in electronic credit ledger, not permanent recovery or negative blocking for future credits. The court held that Rule 86A requires available credit alleged to be fraudulent and cannot create negative blocks. The provision is harsh and must be strictly interpreted, being anterior to assessment finalization. HC directed withdrawal of negative blocks and refund of Rs. 20 lakh deposited by petitioners within two weeks, emphasizing that permanent recovery requires following statutory procedures under Sections 73-74 of CGST Act. Case-Laws GST Thu, 03 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418592