Negative Blocking of ITC Beyond Available Credit Held Invalid Under Rule 86A

Garg Furnace Limited Vs Union of India And Others (Punjab And Haryana High Court) The writ petition before the Punjab and Haryana High Court was confined to the challenge against the action of the tax authorities in blocking the petitioner’s Electronic Credit Ledger (ECL) by creating a negative balance through an entry dated 01.10.2025. The petitioner contended that the blocking of Input Tax Credit (ITC) in excess of the credit actually available in the ECL was in violation of Rule 86A of the Central Goods and Services Tax Rules, 2017 and the Punjab GST Rules, 2017, as well as the principles...