Find
Yes. The officer can allow debit fully or partly under Rule 86A(2). The CBIC guidelines also say the block should not exceed the credit believed to be ineligible.
GST
Getting partial release of blocked credit
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Provisions
Rule 86A(2), CGST Rules 2017; CBIC guidelines on Rule 86A, 2 November 2021
Analysis
If your ledger has ₹10 lakh and the suspect supplier's invoices carry ₹1.8 lakh of tax, blocking ₹10 lakh goes beyond the guidelines. Ask for release of ₹8.2 lakh while you prove the ₹1.8 lakh. Show the working clearly: total blocked, invoices from the suspect supplier, and the difference.
Close
- Work out the tax on invoices from the suspect supplier only.
- Prepare a table comparing that figure with the amount blocked.
- Ask for immediate release of the excess under Rule 86A(2).
- Attach evidence for the suspect invoices too.
- Follow up for a written order.
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