Telangana HC Upholds Principles of Natural Justice in Blocking ITC under Rule 86A of CGST Rules

• Telangana HC clarified the applicability of principles of natural justice in blocking ITC under Rule 86A of the CGST Rules
• Rule 86A does not exclude principles of natural justice and should be read into the provision
• Section 74 of the CGST Act explicitly mandates following principles of natural justice in similar circumstances
• Interpreting Rule 86A without safeguards would create inconsistency with the parent statute
• Telangana HC emphasized the importance of preventing hardship, injustice, and friction in the GST system
• The ruling provides relief for taxpayers by ensuring they have an opportunity to be heard before ITC is blocked
• The decision strikes a balance between effective tax administration and protection of taxpayers’ rights

Source: jsalaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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