Answer

1. F

   Facts

   Rule 86A allows a block where the tax charged has not been paid to the Government. You can argue that you paid the supplier in full and that recovery should be made from the supplier.

2. P

   Provisions and law

   • Rule 86A(1), CGST Rules 2017Commissioner or authorised officer, not below Assistant Commissioner, may disallow debit of ITC for recorded reasons where the supplier or recipient is non-existent, goods were not received, tax was not paid or there is no valid document
   • Sec 16(2), CGST Act 2017ITC needs a tax invoice, receipt of goods or services, tax actually paid by the supplier and the recipient's return
   • CBIC guidelines on Rule 86A, 2 November 2021Block must rest on material evidence, not suspicion; amount not more than the suspect credit; monetary limits for officer ranks; taxpayer may give evidence for review
3. A

   Analysis

   Sec 16(2)(c) ties ITC to tax actually paid by the supplier, which is why this ground exists. Courts have shown sympathy for genuine buyers who paid in full and have urged action first against the defaulting supplier, though outcomes vary. Example: you paid ₹5,90,000 including ₹90,000 GST by bank; show this and ask the officer to pursue the supplier.

4. C

   Conclusion

   1. 1Collect bank proof of full payment including GST.
   2. 2Show the invoices in your GSTR-2B.
   3. 3Write to the supplier asking them to pay and file, and keep the reply.
   4. 4Ask the officer to release the credit or limit the block to that supplier.
   5. 5Hold further payments to that supplier until they comply.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.