An RTI reveals that Whopping 6.14 lac crore ITC blocked under rule 86A of CGST Rules, 2017 out of which 2.96 lac Crore is blocked for more then 1 year in utter disregard of rule 86A(3).
Clarification by GSTN (@Infosys_GSTN) on 13.10.2021 on Twitter
In social media, a figure of Rs. 6.14 Lakh Crore of ITC blocked in GST is being circulated based on a RTI reply. The figure on verification has been found to be incorrect as it includes erroneous data entries made by the taxpayers.
ITC of approximately Rs. 14,000 crores involving 66,000 taxpayers stands blocked as on date. This is only 0.38% (Approx.) of average ITC utilized by all taxpayers in a financial year.
No we have two figures on received on the basis of RTI and one received as clarification from GSTN on twitter and only department knows which one is correct and why no effort been made to correct wrong entries of whopping 6 Lakh Crore. It is also not clear with why GSTN clarifies on the issues while ideally CBIC should have issued clarification.
Read Full text of the RTI
GOODS AND SERVICE TAX NETWORK
4th Floor, Worldmark 1, East Wing, Asset 11,
Hospitality District, Aerocity, New Delhi-11000
Tel: 011-49111200, Fax: 011-49111210
Email: info@gstn.org.in, Website: www.gstn.org
CIN: U72200DL2013NPL249988
File No. CPIO/RTI/2021/GSTN/244
Dated: 05-10-2021
To,
……………………………..
Sub Your RTI Application No. CBECE/R/T/21/01290 dated 31.02.2021 under RTI Act, 2005.
Sir,
With reference to your above mentioned RTI application received upon transfer from Shri Aman Mittal, CPIO/Deputy Commissioner, GST Policy Wing New Delhi on 13.09.2021, for SI. No. 1 to 4 of the above captioned RTI, point wise response to information sought by you is at follows.
| SI No. | Information sought by RTI Applicant | Information provided by CPIO |
| I. | Please specify state wise numbers of taxpayers for whom Input Tax Credit has been blocked under rule 86A of CGST Rules 2017 as on 31.07.2021. | The information sought by RTI applicant at SI. No. 1 can be found at Annexure-1. |
| 2. | Please specify the amount of Input Tax Credit blocked for all such taxpayers. | The amount of Input Tax Credit blocked from all such taxpayer are Rs. 6,14,010.81 Cr. |
| 3 | Please specify out of all the Input Tax Credit blocked under rule 86A of CGST Rules 2017, how much Input Tax Credit pertains to period exceeding 1 year from the date of blocking of such Input Tax Credit. | The amount of Input Tax Credit pertaining to period exceeding 1 year from the date of blocking of such input tax credit blocked under rule 86A of CGST Rules, 2017 is Rs. 296311.45 Cr. |
| 4. | Please specify details of Taxpayers for whom Input Tax Credit has been unblocked after 1 year has been lapsed from the date of blocking of such Input Tax Credit. | The details of taxpayers for whom Input Tax Credit has been unblocking after 1 year has been lapsed from the date of blocking of such Input Tax credit are as follows
No. of GSTINs: 2228 Amount: Rs. 1370.71 Cr. |
B. In case you are dissatisfied with the information, you may file an appeal to First Appellate Authority Shri Dheeraj Rastogi Executive Vice President (Support), Goods and Services Tax Network, East Wing, 4th Floor, World Mark-1, Aerocity, New Delhi-110037.
Copy for information to:-
(1) Shri Aman Mittal CPIO, Deputy Commissioner, Government of India, Ministry of Finance, Central Board of Indirect Taxes and Customs, GST Policy Wing, Room No. 244D North Block New Delhi – 110001.
| S. No. | State | No. of Tax Payers | Amount (in Cr.) |
| 1 | Jammu and Kashmir | 129 | 31.76 |
| 2 | Himachal Pradesh | 326 | 110.45 |
| 3 | Punjab | 8285 | 1213.25 |
| 4 | Chandigarh | 129 | 19.69 |
| 5 | Uttarakhand | 963 | 255.76 |
| 6 | Haryana | 6145 | 2779.36 |
| 7 | Delhi | 13539 | 5744.75 |
| 8 | Rajasthan | 4193 | 470.92 |
| 9 | Uttar Pradesh | 10174 | 582163.82 |
| 10 | Bihar | 1480 | 556.82 |
| 11 | Sikkim | 5 | 12.85 |
| 12 | Arunachal Pradesh | 1 | 0.13 |
| 13 | Nagaland | 6 | 5.49 |
| 14 | Manipur | 3 | 0.27 |
| 15 | Mizoram | 3 | 1.01 |
| 16 | Tripura | 646 | 48.46 |
| 17 | Meghalaya | 18 | 6.18 |
| 18 | Assam | 396 | 200.99 |
| 19 | West Bengal | 2920 | 7335.34 |
| 20 | Jharkhand | 3399 | 694.42 |
| 21 | Odisha | 539 | 316.15 |
| 22 | Chhattisgarh | 474 | 224.70 |
| 23 | Madhya Pradesh | 1723 | 987.86 |
| 24 | Gujarat | 5767 | 1201.67 |
| 25 | Daman and Diu | 4 | 0.22 |
| 26 | Dadra and Nagar Havelli | 34 | 3.43 |
| 27 | Maharashtra | 2810 | 4210.11 |
| 29 | Karnataka | 3196 | 1381.88 |
| 30 | Goa | 51 | 219.59 |
| 32 | Kerala | 72 | 184.36 |
| 33 | Tamil Nadu | 2003 | 2,415.58 |
| 34 | Puducherry | 455 | 25.24 |
| 35 | Andaman and Nicobar island | 3 | 0.24 |
| 36 | Telangana | 3288 | 469.42 |
| 37 | Andhra Pradesh | 165 | 686.96 |
| 97 | Other Territory | 4 | 31.65 |
| Total | 6,14,010.81 |
Infosys has clarified that this is a fake news. Only 44000 cr is blocked.
If it is a credit due to taxpayers, what is the reason that the government has blocked it? And Sr. No. 4 indicates that the Tax Credits older than one year have lapsed. Does that mean Rs. 1370.71 Cr. are added to the coffers of the government from the taxpayers? That doesn’t make sense. If there is a credit, there should be no expiration date.
I think there may be some issue in Uttar Pradesh Number which is 95% of total value?
Thanks for bringing such an important issue by way of RTI. Data from UP is mindboggling. Whether this state’s budget is strong enough as to sustain the jerk if this blocked ITC is directed to be released by authorities or court
Uttar Pradesh is the front runner with 95% of total blocked credit generated from this one state only. This needs further deep investigation.