Answer

1. F

   Facts

   You still file GSTR-3B on time. Tax that the blocked credit would have covered must be paid in cash, or from any credit that is not blocked.

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 50(1), CGST Act 2017Interest at 18 percent a year on tax paid late
3. A

   Analysis

   Rule 86A only stops debit of the blocked amount; it does not suspend your return. Late filing brings late fee, and late tax brings interest under Sec 50(1). Example: output tax ₹4 lakh, unblocked credit ₹1.5 lakh, so pay ₹2.5 lakh by challan before filing. Plan cash for the coming months too, as the block may last up to a year.

4. C

   Conclusion

   1. 1Work out output tax for the month.
   2. 2Use unblocked credit first.
   3. 3Create a PMT-06 challan for the balance and pay.
   4. 4File GSTR-3B by the due date.
   5. 5Make a cash plan for the next few months.

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