Rule 86A Cannot Create Artificial Negative ITC Balance: P&H HC

By CA Sandeep Kanoi Goods and Services Tax Judiciary February 17, 2026

Case Name: Vee Kay Concast Private Limited Vs Union of India (Punjab and Haryana High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Panjab Haryana high court

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Vee Kay Concast Private Limited Vs Union of India (Punjab and Haryana High Court) The writ petition before the Punjab and Haryana High Court was confined to the action of the respondents in blocking the petitioner’s Electronic Credit Ledger (ECL) by creating a negative balance entry dated 30.09.2025 under Rule 86A of the Central Goods and Services Tax Rules, 2017. The petitioner, a registered entity under the CGST and PGST Acts, contended that the Input Tax Credit (ITC) was negatively blocked without prior notice and in violation of Rule 86A and principles of natural justice. The central que...

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