The order for blocking of Electronic credit ledger (ECL) under GST contain two pre-requisite i.e. Reason to believe & recorded in writing.
The Government has introduced Rule 86A to block ineligible or fraudulently availed ITC by the taxpayers vide Notification dated 26.12.2019. As per this rule, ITC available in the ECL of the taxpayer can be blocked if commissioner has ‘reasons to believe’ that taxpayer has fraudulently availed ITC.
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