Find
Rule 86A allows a block where the tax charged has not been paid to the Government. You can argue that you paid the supplier in full and that recovery should be made from the supplier.
GST
Block because supplier did not pay tax
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Rule 86A(1), CGST Rules 2017; Sec 16(2), CGST Act 2017; CBIC guidelines on Rule 86A, 2 November 2021
Analysis
Sec 16(2)(c) ties ITC to tax actually paid by the supplier, which is why this ground exists. Courts have shown sympathy for genuine buyers who paid in full and have urged action first against the defaulting supplier, though outcomes vary. Example: you paid ₹5,90,000 including ₹90,000 GST by bank; show this and ask the officer to pursue the supplier.
Close
- Collect bank proof of full payment including GST.
- Show the invoices in your GSTR-2B.
- Write to the supplier asking them to pay and file, and keep the reply.
- Ask the officer to release the credit or limit the block to that supplier.
- Hold further payments to that supplier until they comply.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.