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Blocked credit is still your asset until a demand is decided, but it is uncertain. Show it as a separate line in GST credit receivable and disclose the block in notes.
GST
Showing blocked credit in your books
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Provisions
Rule 86A(1), CGST Rules 2017; Rule 86A(3), CGST Rules 2017
Analysis
Rule 86A freezes use, not ownership, and Rule 86A(3) ends the block in a year. Your auditor will decide whether a provision is needed based on the strength of your evidence. Example: ₹9 lakh blocked; show 'GST input credit, blocked under Rule 86A, ₹9 lakh' with a note on the date and status. Lenders appreciate clear disclosure.
Close
- Separate blocked credit from usable credit in the books.
- Add a note on the date, amount and status.
- Discuss any provision with your auditor.
- Update the note when the block is lifted or lapses.
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