ITC Can Be Blocked Even if No Balance Exists on Date of Order: Allahabad HC

R M Dairy Products LLP Vs State of U P and 3 Ors. (Allahabad High Court) The Allahabad High Court examined a writ petition challenging an order dated 25.06.2021 passed under Rule 86A(1)(a)(i) of the State/Central GST Rules, 2017, whereby input tax credit (ITC) was blocked. The petitioner contended that the authorities lacked jurisdiction to block credit beyond what was available on the date of the order, that no valid “reason to believe” existed, that adjudication under Section 74 of the UP GST Act was pending making the action premature, and that recovery could only occur under Sections 7...