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SC: GST Dept Cannot Block ITC Beyond Available Credit Under Rule 86A

SAG Infotech
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Summary

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  • The Supreme Court has ruled that the GST Department cannot block Input Tax Credit (ITC) beyond the available credit under Rule 86A of the Central Goods and Services Tax (CGST) Rules, 2017.
  • This decision addresses the powers of GST authorities concerning the utilization of ITC in a taxpayer’s Electronic Credit Ledger (ECL).
  • The case arose from a challenge by taxpayers regarding the scope of these powers.
  • This ruling could significantly impact how GST authorities manage ITC claims moving forward.

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