Mandatory Written Reasons Required to Block ITC Under Rule 86A: Allahabad HC

Pilcon Infrastructure Private Limited Vs State of U.P. And Another (Allahabad High Court) Mandatory Requirement of Written ‘Reasons to Believe’ Under Rule 86A for Blocking Input Tax Credit (ITC) Summary : In Pilcon Infrastructure Pvt. Ltd. v. State of U.P., the Allahabad High Court held that blocking Input Tax Credit (ITC) under Rule 86A of the U.P. GST Rules without recording specific, written “reasons to believe” is illegal and without jurisdiction. The petitioner’s ITC of ₹13,96,220/- was blocked based on a generic DGGI alert alleging its supplier was non-functional an...