Pre-Decisional Hearing Crucial for ITC Blocking: Karnataka HC

Advertisement K-9-Enterprises Vs State of Karnataka (Karnataka High Court) In a significant ruling for Goods and Services Tax (GST) taxpayers, the Karnataka High Court, in a recent intra-court appeal concerning K-9-Enterprises vs. State of Karnataka, has overturned a single judge’s order, emphasizing the necessity of a pre-decisional hearing before blocking a taxpayer’s Electronic Credit Ledger (ECL) under Rule 86A of the Central Goods and Services Tax Rules, 2017. The judgment highlights the drastic nature of blocking ITC and the paramount importance of natural justice principl...