Karnataka HC Sets Aside GST Credit Ledger Blocking Due to Absence of Prior Notice

SUF Enterprises Vs Assistant Commissioner Central Tax (Karnataka High Court) The Karnataka High Court heard a writ petition challenging the action of the tax authorities in blocking the petitioner’s electronic credit ledger and creating a negative balance. The electronic credit ledger was blocked on the ground that credit had been claimed without receipt of goods or services and that the supplier was found to be non-functioning. The petitioner contended that the power to block the electronic credit ledger is exercised under Rule 86A of the Central Goods and Services Tax Rules, 2017. It was a...