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: [email protected], 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.

Govt blocks ITC of over Rs 6.14 Lakh Crores under Rule 86A: RTI

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

Download RTI in PDF Format

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5 Comments

  1. Tiru Narayan says:

    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.

  2. Anand Mohan says:

    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

  3. DeepanshuGupta says:

    Uttar Pradesh is the front runner with 95% of total blocked credit generated from this one state only. This needs further deep investigation.

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