HC ruled that blocking of Input Tax Credit (ITC) ledger beyond ...

Taxpayers Win: Rule 86A Limits on Input Tax Credit Ledger Automatically Expire After One Year

May 8, 2025

Case Laws GST HC

HC ruled that blocking of Input Tax Credit (ITC) ledger beyond one year under Rule 86A of CGST Rules, 2017, must be lifted. The statutory interpretation of Rule 86A(3) mandates automatic removal of credit restrictions after the specified time period. The court's decision explicitly notes that lifting the ITC block is independent of any concurrent administrative or legal proceedings against the taxpayer. The restriction is therefore automatically terminated after the one-year period, providing relief to the petitioner while preserving the authority's right to pursue separate investigative actions.

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HC ruled that blocking of Input Tax Credit (ITC) ledger beyond ...

Taxpayers Win: Rule 86A Limits on Input Tax Credit Ledger Automatically Expire After One Year

May 8, 2025

Case Laws GST HC

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