ITC in ECRL can be Utilised for making GST Appeal Pre-deposit u/s 107: Madras HC Clarifies in Ford India Ruling

The Madras High Court has clarified that Input Tax Credit (ITC) in Electronic Credit Ledger (ECRL) can be utilized for making GST appeal pre-deposits under Section 107. This ruling came in response to Ford India's case, establishing an important precedent for taxpayers. The court emphasized that restricting the use of available ITC for pre-deposits would be contrary to the GST law's spirit. This decision provides significant relief to taxpayers by allowing them to utilize their accumulated ITC for appeal proceedings. The ruling helps preserve working capital for businesses while maintaining their right to appeal adverse GST orders.