CGST Rule 86(A) not allows insertion of negative balances in Electronic Credit ledger: Telangana HC

Laxmi Fine Chem Vs Assistant Commissioner (Telangana High Court)

In the case of Laxmi Fine Chem vs. Assistant Commissioner, Telangana High Court, the petitioner contested the action taken by the respondents in blocking input tax credit amounting to Rs. 50,06,000 without issuing a show cause notice. The petitioner argued that this action violated Rule 86(A) of the CGST Rules 2017, as it involved inserting a negative balance in the electronic credit ledger, which the rule does not permit.

During the hearing, the Standing Counsel for the State conceded that the blocking of inpu

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