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The block still ends one year after it was imposed. The Bombay High Court held it lapses by law even if registration is cancelled.
GST
Blocked credit when registration is cancelled
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Provisions
Rule 86A(3), CGST Rules 2017
Analysis
Rule 86A(3) has a fixed one-year life. In NZS Traders (2026), the Bombay High Court held the block cannot continue past one year just because registration was cancelled. If you plan revocation or a final return, the credit position matters for any tax on closing stock. Take advice on how the lapse and cancellation interact in your case.
Close
- Note the block date and calculate the lapse date.
- Check whether you plan revocation or closure.
- Write to the officer after the lapse date citing Rule 86A(3).
- Account for the credit in the final return if closing.
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