https://www.taxtmi.com/caselaws?id=783159 The HC held that Rule 86A of the GST Rules, 2017 permits only a temporary restriction on the debit of legitimately available ITC in the Electronic Credit Ledger (ECL) where the Commissioner has reason to believe that such credit is fraudulently availed or ineligible. Endorsing the view of other HCs, it ruled that prior notice is not mandatory given the emergent nature of the power. However, "negative blocking" beyond the credit actually available in the ECL is impermissible. Authorities must use statutory recovery mechanisms under Sections 73 and 74 of the CGST/PGST Acts. The writ petition was allowed. en-us Wed, 19 Nov 2025 00:00:00 +0530 Wed, 10 Dec 2025 08:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783159 The HC held that Rule 86A of the GST Rules, 2017 permits only a temporary restriction on the debit of legitimately available ITC in the Electronic Credit Ledger (ECL) where the Commissioner has reason to believe that such credit is fraudulently availed or ineligible. Endorsing the view of other HCs, it ruled that prior notice is not mandatory given the emergent nature of the power. However, "negative blocking" beyond the credit actually available in the ECL is impermissible. Authorities must use statutory recovery mechanisms under Sections 73 and 74 of the CGST/PGST Acts. The writ petition was allowed. Case-Laws GST Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783159