Find
New registrations with large credit and few sales can trigger risk checks. The same remedy applies: ask for reasons and show your business is real.
GST
Block in the first months of a new business
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; CBIC guidelines on Rule 86A, 2 November 2021
Analysis
Rule 86A grounds include a recipient not found at the declared place. A new business with heavy purchases, for example during setup, should be ready to show premises, staff, machines and the purpose of purchases. Example: ₹25 lakh of machinery credit in month two is normal for a factory; show the installation and the plan for production.
Close
- Ask for the reasons for the block.
- Show premises, staff, photos and purchase use.
- Explain the setup phase in your representation.
- Invite a verification visit if helpful.
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