https://www.taxtmi.com/caselaws?id=462260 HC ruled that Rule 86A of CGST Rules cannot lead to negative blocking of Electronic Credit Ledger (ECL). The court held that blocking ITC credits must be limited to available balance and cannot compel taxpayers to replenish ledger with valid credits. The impugned orders blocking ECL beyond existing balance were quashed, emphasizing Rule 86A is a protective measure, not a tax recovery mechanism. The ruling provides clear guidelines on legitimate use of administrative powers in GST credit management. en-us Tue, 26 Nov 2024 00:00:00 +0530 Thu, 05 Jun 2025 19:01:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462260 HC ruled that Rule 86A of CGST Rules cannot lead to negative blocking of Electronic Credit Ledger (ECL). The court held that blocking ITC credits must be limited to available balance and cannot compel taxpayers to replenish ledger with valid credits. The impugned orders blocking ECL beyond existing balance were quashed, emphasizing Rule 86A is a protective measure, not a tax recovery mechanism. The ruling provides clear guidelines on legitimate use of administrative powers in GST credit management. Case-Laws GST Tue, 26 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462260