Madras HC Orders Unblocking of ITC under Rule 86A for Lack of Written Reasons

Tvl. J.M. Traders Vs Deputy Commissioner (ST) (Madras High Court) The Madras High Court, in the case of Tvl. J.M. Traders Vs Deputy Commissioner (ST), has set a precedent on the procedural requirements under Rule 86A of the Tamil Nadu Goods and Services Tax Rules, 2017 (TNGST Rules) for blocking Input Tax Credit (ITC). The court’s decision emphasizes the necessity for authorities to communicate reasons in writing when exercising their powers to block ITC. Background: Tvl. J.M. Traders approached the Madras High Court seeking directions to unlock their ITC ledger, which was blocked by th...