Unblocking of ITC on expiry of one year from the date of blocking

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....of one year from the date of blocking in case no action has been taken by the officers. It has been brought to notice by GSTN that in about 6414 GSTINs pertaining to Delhi State jurisdiction, ITC amounting to Rs. 2037.31 crs. has been blocked by the Delhi State GST officers which is lying blocked beyond a period of one year. In this regard, GSTN has already informed that they are contemplating to introduce the functionality of automatically unblocking of such ITCs, in view of the provision of sub rule (3) of Rule 86A, as mentioned above, which may result in such ITC becoming available to the taxpayers for utilisation. It is noticed that most of these taxpayers ITCs would have been blocked by the Proper Officers on account of some mism....

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....n case, during the field visit the taxpayer is found existing, then a show cause notice (DRC-01) should be issued proposing to create a demand by disallowing the ITC to the extent, fraudulently availed or for which the taxpayer is not eligible, keeping in view the provisions of clause (a) to (d) of sub rule (1) of rule 86A. Thereafter, DRC 07 should be issued, if no response or non satisfactory response is received, as per the law and finally, the blocked ITC should be unblocked and utilised towards payment of the demand created through DRC-07. c. Here, it should also be kept in mind that earlier when the ITCs were blocked, some or all of these steps might have already been taken, so only the remaining steps should be taken now and the m....