Find
Rule 86A is a temporary freeze on part of your input tax credit. The credit stays in your ledger, but you cannot use it to pay tax or claim a refund while the block lasts.
GST
What a Rule 86A block means in plain words
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Provisions
Rule 86A(1), CGST Rules 2017; Rule 86A(3), CGST Rules 2017
Analysis
Rule 86A(1) allows an officer to stop debit of credit he has reason to believe was fraudulently availed or is ineligible, for example because a supplier was non-existent. It is not a final finding. Under Rule 86A(3), the block ends one year after it was imposed. Example: ₹3 lakh blocked in your ledger stays there; you just cannot use it for your monthly GSTR-3B until it is released or lapses.
Close
- Check the blocked amount and date in your credit ledger.
- Understand that this is a freeze, not a demand.
- Plan to pay output tax in cash meanwhile.
- Ask for the reasons and start collecting evidence.
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