Restriction on using of ITC credit available in Electronic Credit Ledger

Govt has imposed restriction on using of ITC credit available in Electronic Credit Ledger on GSTN Portal vide Ntf no. 75/2019(Central Tax) dtd. 26.12.2019.

ITC may be blocked due to any of the below mentioned reasons:

1. ITC has been taken on basis of Tax Invoice or Debit Note but:

(a) issued by a registered person who has been found not conducting any business

(b)without receipt of goods or services or both

2. Person availing ITC is found not conducting any business

3.ITC has been taken on basis of invoice but GST amount has not been paid by the supplier to the government

4. ITC availed without valid document i.e. Tax invoice or debit note etc.

Intention of government is to curb fradulent transactions where no supply is made though includes billing only.

For Regular Updates Join : https://t.me/Studycafe

Tags : GST, Electronic Credit Ledger, Rule 86A

This article has been shared by CA Kamal Aggarwal.  He is a practicing chartered accountant and runs a Facebook Page “easeoftaxation”.