Reason for blocking of Credit under Rule 86A must be communicated to taxpayer

HEC India LLP Vs Commissioner of GST and Central Excise Audit-II (Madras High Court) GST Authority needs to communicate reasons for blocking ITC of the taxpayer Hon’ble Madras High Court has held that the GST Authority necessarily needs to communicate reasons to the taxpayer if the taxpayer’s Input Tax Credit (ITC) is blocked. In the present case, the Commissioner of GST and Central Excise had blocked any attempts of deduction from the electronic credit ledger of M/s HEC India LLP (Appellant) on unstated reasons by exercising its powers under Rule 86-A of the Central Goods and Services Tax...