Answer

1. F

   Facts

   Sometimes reversing credit on a genuinely doubtful invoice and asking for release of the rest is practical. Reverse only after checking each invoice, because a reversal is treated as accepting the credit was ineligible.

2. P

   Provisions and law

   • Rule 86A(2), CGST Rules 2017The officer may allow the debit, fully or partly, once satisfied that the conditions no longer exist
   • Sec 73, CGST Act 2017Demand of tax and ITC wrongly availed, non-fraud cases
   • Rule 142(2), CGST Rules 2017Voluntary payment intimated in DRC-03
3. A

   Analysis

   Rule 86A(2) lets the officer release credit once the concern is addressed. If one supplier truly cannot be traced and you cannot prove receipt, paying that ITC with interest through DRC-03 can close that part and support release of the rest. But do not reverse invoices you can defend. Example: ₹1.2 lakh from a supplier with no transport proof could be paid; ₹6 lakh from verified suppliers should be defended.

4. C

   Conclusion

   1. 1Sort blocked invoices into defensible and doubtful.
   2. 2Take advice on the doubtful ones.
   3. 3Pay any accepted amount with interest through DRC-03 and keep the ARN.
   4. 4Send the DRC-03 copy with a request to release the rest.
   5. 5Defend the remaining invoices with evidence.

A reversal can be used against you later, so do it only after review.

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