Find
Most blocks start with a bad supplier. Simple checks before buying, and paying within 180 days through the bank, lower the risk a lot.
GST
Checking suppliers to avoid a Rule 86A block
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 16(2), CGST Act 2017; Rule 86A(1), CGST Rules 2017
Analysis
Sec 16(2) conditions and Rule 86A grounds both turn on the supplier being real and paying tax. Before buying, search the GSTIN for active status, filing history and address, and visit if the amount is large. After buying, check that invoices appear in GSTR-2B and that the supplier keeps filing GSTR-3B. Red flags: new GSTIN, no filing history, prices below market, insistence on cash or third-party payments.
Close
- Search each new supplier's GSTIN for status and return filing.
- Keep PAN, address proof and a photo of the premises on file.
- Pay only by bank to the supplier's own account.
- Match invoices to GSTR-2B every month.
- Stop buying from suppliers who stop filing.
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