GST Credit Ledger Cannot Be Blocked Without Recorded Reasons: Bombay HC

Rithwik Projects Private Limited Vs Union of India & Ors. (Bombay High Court) Blocking of Electronic Credit Ledger under Rule 86A Requires Recorded Reasons and Timely Post-Decisional Hearing: Bombay High Court The Bombay High Court, in the matter of Rithwik Projects Private Limited v. Union of India & Ors., ruled that the electronic credit ledger of a taxpayer cannot be blocked under Rule 86A of the CGST Rules without adhering to principles of natural justice, which requires recording explicit reasons and providing a prompt post-decisional hearing. The Petitioner’s credit ledger...