Madras High Court Clarifies Strict Requirements for Blocking Input Tax Credit Under Rule 86A of CGST Rules
The Madras High Court has held that the power to block Input Tax Credit under Rule 86A of the CGST Rules is drastic and must be exercised with due care, based on adequate material and objective consideration. The Court upheld the Revenue’s action in blocking credit, finding sufficient evidence of fraudulent transactions and compliance with procedural safeguards.
