Power to block ITC

As per the Rule 86A of CGST Rules, commissioner or an officer authorized by him (not below the rank of assistant commissioner) can block the amount available in electronic credit ledger, if he found or has reasons to believe that-

1. Supplier is non-existent or not conducting any business from GST registered places.
2. Tax invoice is received without actual receipt of goods and services.
3. ITC availed on strength of the invoice on which GST has not been paid to the government.
4. Recipient is non-existent or not conducting any business from GST registered places.
5. The person availing ITC is not in possession of a valid tax invoice or a debit note.

The commissioner after being satisfied that the disallowing conditions, no longer exists, allow such credit to use.

Such restrictions cease to have effect after the expiry of one year from the date of imposing such restrictions.