Blocking of ITC Leading to Negative Balance in ECL is unjustified: Delhi HC

Karuna Rajendra Ringshia Vs Commissioner of Central Goods And Service Tax & Ors. (Delhi High Court)

In the case of Karuna Rajendra Ringshia Vs Commissioner of Central Goods And Service Tax & Ors., the Delhi High Court addressed the issue of “negative blocking” of the petitioner’s Electronic Credit Ledger (ECL) under Rule 86A of the CGST Rules, 2017. The petitioner contended that the blocking of ₹43,76,492, resulting in a negative balance of ₹36,18,911 in the ECL, was unjustified and beyond the legal scope. Relying on the precedent set in B

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