Judgement

The Bombay High Court held that ITC cannot be blocked in case the electronic credit ledger has a negative balance, citing violation of Rule 86A of the CGST Rules, 2017.

ITC Cannot be Blocked If Electronic Credit Ledger Has Negative Balance: Bombay High Court

After reviewing the matter, the court held that there was no reason to interfere with the show cause notices at this stage since the petitioner has a legal remedy available under GST.

Madras High Court Refuses to Quash GST Show Cause Notice, Directs Taxpayer to File Reply with Authorities

GST: High Court Says Rule 86A Show Cause Notice Cannot Be Challenged Prematurely

Punjab & Haryana High Court bars excess blocking of Electronic Credit Ledger under Rule 86A

Negative Blocking of GST Credit Beyond Available Balance Is Illegal

High Court quashes ITC blockage of Rs.12,84,273/- under Rule 86A as invalid where ledger balance was NIL; directs restoration within 15 days

High Court Quashes ITC Blockage Order under Rule 86A; Directs Restoration of Rs.12.8 lacs

As per Apex Court GST Rule 86A requires independent evaluation and pre-decisional hearing before restricting the Input Tax Credit

GST Credit Blocked? Not Without pre-decisional hearing Rules Supreme Court!

SC uphelds the HC’s restriction on Rule 86A; says recovery must follow adjudication.

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ITC Cannot be Blocked If Electronic Credit Ledger Has Negative Balance: Bombay High Court

GST: High Court Says Rule 86A Show Cause Notice Cannot Be Challenged Prematurely

Negative Blocking of GST Credit Beyond Available Balance Is Illegal

High Court Quashes ITC Blockage Order under Rule 86A; Directs Restoration of Rs.12.8 lacs

GST Credit Blocked? Not Without pre-decisional hearing Rules Supreme Court!

GST: Supreme Court Strikes Down Negative ITC Blocking as Ultra Vires