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No. The CBIC guidelines say a block must rest on material evidence and not mere suspicion. A vague reason is a ground to seek removal.
GST
Block based only on suspicion
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Provisions
Rule 86A(1), CGST Rules 2017; CBIC guidelines on Rule 86A, 2 November 2021
Analysis
Rule 86A(1) requires 'reasons to believe' recorded in writing, and the guidelines warn against mechanical blocking. Ask what material the officer relied on, such as a report that the supplier was not found at the address. Example: a reason that only says 'supplier risky' gives you a strong point; ask for the material and offer your evidence.
Close
- Ask for the material relied on.
- Point out the guideline on material evidence.
- Give your evidence of genuine purchases.
- Request release of the credit.
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