The Gujarat High Court issued the notices to the Central and State over blocking of Input Tax Credit (ITC) under Rule 86A. The petitioner, Surat Mercantile Association has filed a petition challenging the constitutional validity and vires of Rule 86A of the Central GST Rules and the Gujarat GST Rules. Rule 86A of the GST Rules has given unbridled power to a GST officer to block input tax credit in electronic credit ledger maintained on GSTN portal without giving any notice or intimation to the taxpayer, if the concerned GST officer has reason to believe that input tax available in the electronic credit has been fraudulently availed or is ineligible.
Source Taxscan
Latest Posts in "India"
- When Supplier Defaults, Recipient Loses GST ITC: Conflicting High Court Rulings and Legal Analysis
- GSTN Launches Offline Invoice Management System (IMS) Tool; Issues Detailed User Advisory
- SEBI Asks GST Council to Resolve Tax Issues in Physically Settled Commodity Derivatives
- No Reverse Charge Demand if Service Provider Has Fully Paid Service Tax: CESTAT Hyderabad
- Bombay High Court: GST Not Applicable on Complete Assignment of Leasehold Rights as Sale
