P&H HC Sets Aside Negative GST ITC Blocking as Rule 86A Applies Only to Available Credit

K.K. Alloys Vs Union of India And Ors. (Punjab And Haryana High Court) The Punjab and Haryana High Court considered a writ petition challenging the action of the GST authorities in blocking the petitioner’s Electronic Credit Ledger (ECL) by creating a negative balance through entries dated 27.08.2025 and 29.08.2025. The petitioner limited its challenge to the legality of the negative blocking of Input Tax Credit (ITC), contending that such action violated Rule 86A of the CGST Rules, 2017 and the principles of natural justice. The principal question before the Court was whether Rule 86A p...