Find
High Courts have held that the officer cannot block more than the balance available in the ledger on the date of blocking. A negative balance from blocking is a strong ground to seek removal.
GST
Credit ledger showing negative after blocking
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Provisions
Rule 86A(1), CGST Rules 2017; CBIC guidelines on Rule 86A, 2 November 2021
Analysis
Rule 86A(1) disallows debit of credit 'available' in the ledger. The Bombay High Court in Hemang Bipin Varaiya (2026) held negative blocking illegal. Example: ledger balance ₹3 lakh on the block date, block of ₹7 lakh, ledger shows minus ₹4 lakh; the extra ₹4 lakh blocks future credit and should be removed. Positions differ between courts, so take advice before litigating.
Close
- Download the ledger as on the block date.
- Show the balance available and the amount blocked.
- Ask the officer in writing to remove the excess.
- If refused, discuss a writ petition with an advocate.
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