Abhishek Goyal vs. Union Of INDIA And Ors
Held
The High Court held that Rule 86A of the GST Rules does not permit blocking of ITC in excess of the credit available in the ECL, and creating a negative balance is without jurisdiction. The impugned orders/entries were set aside to the extent they disallowed debit from the ECL in excess of available ITC.
Facts
The petitioner's Electronic Credit Ledger (ECL) had its Input Tax Credit (ITC) blocked by the respondents, resulting in a negative balance. This action was allegedly taken without prior notice and in violation of Rule 86A of the GST Act/Rules.
Key Issues
Whether Rule 86A permits blocking of ITC exceeding the available credit in the Electronic Credit Ledger, and whether such blocking can create a negative balance.
Sections Cited
Rule 86A, Section 73, Section 74, Section 29, Section 83
AI-generated summary — verify with the full judgment below
CWP-32690-2025 IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH (216) CWP-32690-2025 Date of Decision: 21.11.2025 Abhishek Goyal --Petitioner Versus Union of India & others --Respondents CORAM:- HON'BLE MRS. JUSTICE LISA GILL. HON'BLE MRS. JUSTICE MEENAKSHI I. MEHTA. Present:- Mr. Nikhil Goyal, Advocate for the petitioner. Mr. Sourabh Goel, Sr. Standing Counsel with Ms. Defy Jindal, Advocate for respondents. *** LISA GILL.J (Oral)
Learned counsel for petitioner submits that prayer in this writ petition is restricted to action of respondents of blocking of Electronic Credit Ledger (ECL) of petitioner and for deleting entries dated 12.06.2025, 02.09.2025 and 03.10.2025 through which Input Tax Credit has been blocked in negative by the respondents, statedly in violation of provisions of Rule 86A of Punjab Goods and Services Tax Act, 2017 and in violation of principles of natural justice.
Learned counsel for parties are ad idem that question which arises for consideration in the writ petition is: “Whether Rule 86-A of Goods and Services Tax Rules, 2017 (for short Rules, 2017) permit the Commissioner or an officer authorized by him to block a tax payer’s ECL by an amount
The judgment continues below.
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