Govt issues instructions to block Input Tax Credit (ITC) on GSTN portal for cases where investigations are on
New Delhi, Jan 23 (KNN) The Central government has issued internal instructions to block Input Tax Credit (ITC) on GSTN portal in all cases where there are ongoing investigations or if there is a mere allegation against a taxpayer of credits taken on the basis of bogus bills.
Input Tax Credit (ITC) means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.
''All the Zonal Chief Commissioners have the facility to block/unblock ITC availed in a situation covered under Rule 86A (1) (a) of the CGST Rules, 2017 i.e. against fake invoices or against invoices without receipt of goods or services or both, if such availers of credit are located in their jurisdiction,'' Directorate General of GST Intelligence (DGGI) said in a letter dated 13.01.2020.
''To implement this provision, all the CGST Zones are required to make a list, GSTN-wise of fake credit availers and block their ITC under Rule 86A(1)(a) for the entities located in their jurisdiction. If, however, there are certain entities which are located outside their jurisdiction, they should forward a list of such availers along with GSTN No. to the local office of the Pr.ADG/ADG DGGI, with a request to block credit of such GSTN immediately,'' the letter further read.
In order to operationlise this scheme, DGGI further requested that each Pr. Chief Commissioner/Chief Commissioner in its zone should appoint an officer of the rank of Dy Commissioner/A C, as a nodal officer, assisted by few more officers, who should undertake this activity. Similarly, all the 26 Pr.ADG/ADG, DGGI, spread all over India, should also make a Cell in their zone head office nominating one AD/DD rank officer as nodal officer assisted by a few other officers to block the credit of such availers received from their zonal CGST Chief Commissioner, who are located outside the jurisdiction of the concerned CGST Zone.