CBIC issued guidelines for disallowing debit of electronic credit ledger

CBEC-20/16/05/2021-GST/1552 Dated November 2nd, 2021

The Rule 86A of CGST Rules, 2017 empowers the Commissioner or its authorized officers to disallow debit of electronic credit ledger and block the credit on the basis of reasonable belief that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible. The Honorable High Courts in some cases have emphasized the need for laying guidelines for invoking Rule 86A.

Now, CBIC has issued detailed guidelines for the officers to exercise the powers of Rule 86A. In these guidelines, the CBIC has clarified grounds for disallowing debit of an amount from electronic credit ledger, proper authority for the purpose of Rule 86A, procedure for disallowing debit of electronic credit ledger or blocking credit under Rule86A etc.

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