Welcome

‘Sufficient Balance’ is not required in Electronic Credit Ledger in order to block ITC due to ineligibility under Rule 86A

The Hon’ble Calcutta High Court in the case of Basanta Kumar Shaw v. Assistant Commissioner of Revenue, Commercial Taxes and State Tax, [MAT 976 OF 2022 WITH CAN 1 OF 2022] held that in terms of Rule 86A (1) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), the Electronic Credit Ledger (“ECL”) doesn’t need to contain sufficient balance for the purpose of blocking the credit.

Leave a Reply

Your email address will not be published. Required fields are marked *