GST Credit Ledger Unblocked Due to Expiry of Statutory One-Year Restriction Period

NZS Traders Pvt. Ltd. Vs Union of India & Ors. (Bombay High Court) In NZS Traders Pvt Ltd vs Union of India Bombay High Court, the petitioner challenged the blocking of its electronic credit ledger under Rule 86A of the CGST Rules, 2017, whereby an amount of ₹4.25 crore was attached on 16 February 2024 without prior notice, show cause notice, or personal hearing. The petitioner contended that the Input Tax Credit (ITC) availed was lawful and requested removal of the attachment, but no response was received. The grievance primarily centered on Rule 86A(3), which provides that such restric...