Rule 86A Applies Only to ITC Available in Ledger on Blocking Date: Bombay HC

Hindustan Steel Vs Deputy Commissioner of State Tax (Bombay High Court) The Bombay High Court heard a petition challenging an order dated 15 July 2025 issued under Rule 86A of the CGST Rules, 2017, through which the authorities blocked the petitioner’s Electronic Credit Ledger (ECL) to the extent of ₹95,74,850. At the time the order was passed, the petitioner’s available Input Tax Credit (ITC) balance was only ₹600. The petitioner argued that Rule 86A could not be invoked in these circumstances and relied on a previous decision of the same court in Rawman Metal & Alloys as well as ...