GST
What usually happens after a Rule 86A block
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Facts
After a block, the officer may release the credit on your evidence, let it lapse after a year, or start demand proceedings. Many blocks are followed by inquiries into the suppliers involved.
Provisions and law
- Rule 86A(2), CGST Rules 2017Debit may be allowed again, fully or partly, once the officer is satisfied
- Rule 86A(3), CGST Rules 2017The restriction ends one year after it was imposed
- Sec 74A, CGST Act 2017Common demand provision for FY 2024-25 onwards, fraud and non-fraud cases
Analysis
Rule 86A(2) allows release, Rule 86A(3) ends the block after a year, and a separate notice can be issued under the demand sections. Your best move is to build an evidence file now, while records are fresh. Example: a block from a bill-trading inquiry may be followed by a DRC-01A asking you to pay; a strong file helps you reply.
Conclusion
- Ask for reasons and a hearing.
- Build an invoice-wise evidence file.
- Track notices and summons.
- Decide with advice whether to defend or pay any part.
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