Negative Blocking of GST Electronic Credit Ledger Invalid Because Rule 86A Applies Only to Available ITC

SPL Motors Private Limited Vs Union of India And Others (Punjab and Haryana High Court) The Punjab and Haryana High Court considered a writ petition challenging the action of tax authorities in blocking the petitioner’s Electronic Credit Ledger (ECL) and creating a negative balance through an entry dated 29 April 2024. The petitioner sought deletion of the entry on the ground that the blocking of Input Tax Credit (ITC) was in violation of Rule 86A of the Central Goods and Services Tax Rules, 2017 as well as the Haryana Goods and Services Tax Rules, 2017, and also violated the principles of n...