Rule 86A Does Not Permit Artificial Negative Balance in Electronic Credit Ledger: P&H HC

Gurasees Sales Corporation Vs Union of India And Others (Punjab And Haryana High Court) The Punjab and Haryana High Court considered a writ petition limited to the legality of actions taken by the tax authorities in blocking the petitioner’s Electronic Credit Ledger (ECL) under Rule 86A of the Central Goods and Services Tax Rules, 2017. The petitioner challenged the entries dated 09.05.2025 and 29.08.2025, through which Input Tax Credit (ITC) was blocked in such a manner that the ECL reflected a negative balance. The petitioner contended that this action violated Rule 86A of the CGST/PGST fr...