Answer

1. F

   Facts

   Not while the block stands, since Rule 86A stops debit for any liability. You can ask the officer to allow the debit under Rule 86A(2) for that purpose.

2. P

   Provisions and law

   • Rule 86A(1), CGST Rules 2017Officer not below Assistant Commissioner may disallow debit of ITC, for recorded reasons, to pay any liability or claim any refund, where the credit looks fraudulent or ineligible on listed grounds
   • Rule 86A(2), CGST Rules 2017Debit may be allowed again, fully or partly, once the officer is satisfied
3. A

   Analysis

   Rule 86A(1) disallows debit to discharge any liability under Sec 49. Rule 86A(2) lets the officer allow debit fully or partly once satisfied. Whether an officer will allow debit to pay a demand on the same issue is a matter to request in writing. Example: demand ₹4 lakh, blocked credit ₹6 lakh; ask that ₹4 lakh be released for payment. Keep a cash backup.

4. C

   Conclusion

   1. 1Write to the officer asking for debit to be allowed for the demand.
   2. 2Explain the link between the demand and the blocked credit.
   3. 3Arrange cash in case the request is refused.
   4. 4Pay before the deadline in the order or notice.

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