Now The GST Commissioner can block ITC, Rule 86A
CBDT added Rule 86A via notification no.75/2019- Central Tax Dated:26th December 2019- Central Goods & Service Tax (Ninth Amendment Rules, 2019). Original Notification No- 75/2019
Most relavent points from this notification are as:-
- The Commissioner or any other officer who is authorised by the commissioner having evidence that ITC available in E-credit ledger has been fraudulently availed or is ineligible then he may not allow utilisation of such ITC or refund of such ITC to the extent of:-
- ITC availed on Invoice/debit note/ other document received from the supplier who has been found non-existent.
- ITC availed on Invoice/debit note/ other document received from the supplier who has Not been conducting any business from any place for which registration has been obtained.
- ITC availed without receipt of goods or services or both.
- ITC availed on Invoice/debit note/ other document received from the supplier who has not paid tax to the Government on that invoice.
- Person availing ITC has been found non-existent.
- Person availing ITC has not been conducting any from any place for which registration has been obtained.
- Person availing ITC has not been holding a tax invoice/debit note/or other documents.
- This restriction shall valid up to 1 year from the date of imposing restriction and shall cease to effect after the expiry of a period of one year.
- In our view Government is making provisions more complicated for genuine recipients instead of simplifying it.
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