Negative Blocking of ECL Held Beyond Scope of Rule 86A: P&H HC

ISKCON Steel Traders Vs Union of India (Punjab And Haryana High Court) The Punjab and Haryana High Court examined a limited but significant issue concerning the scope of powers under Rule 86A of the Central Goods and Services Tax Rules, 2017, namely whether tax authorities can block a taxpayer’s Electronic Credit Ledger (ECL) by an amount exceeding the input tax credit (ITC) actually available at the time of passing the order, thereby creating a negative balance. The petitioner challenged the action of the respondents in blocking its ECL on 02.09.2025 by inserting a negative ITC entry, alle...