Answer

1. F

   Facts

   No. While the block stands, the blocked credit cannot be used, including for pre-deposit. Pay the pre-deposit in cash or get the block lifted first.

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
   • 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

   Rule 86A(1) disallows debit of the blocked amount for discharging any liability. The Madras High Court in Tvl Nualco (2026) held that blocked credit cannot be used for the pre-deposit while the block continues. Example: a demand of ₹20 lakh needs ₹2 lakh pre-deposit; if your only credit is blocked, arrange cash. Ask the officer to decide your unblocking request quickly if it is pending.

4. C

   Conclusion

   1. 1Work out the pre-deposit amount.
   2. 2Check how much unblocked credit is available.
   3. 3Pay the balance in cash through a challan.
   4. 4File the appeal within time.
   5. 5Pursue the unblocking request separately.

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