Allahabad HC Upholds Negative ITC Blocking Under GST

Samagrah Metal Trading Co. Vs Commissioner State Goods And Service Tax and 3 Others (Allahabad High Court) In a significant ruling for businesses operating under the Goods and Services Tax (GST) regime, the Allahabad High Court has upheld the practice of ‘negative blocking’ of Input Tax Credit (ITC) under Rule 86A of the Central Goods and Services Tax (CGST) / Uttar Pradesh Goods and Services Tax (UPGST) Rules, 2017. The decision, in the case of Samagrah Metal Trading Co. Vs Commissioner State Goods And Service Tax And 3 Others, clarifies the nature and scope of Rule 86A, dismissin...