Madras HC directs GST authorities to reconsider blocked ITC claim and pass orders within four weeks

The Madras High Court ordered GST authorities to reconsider a taxpayer’s blocked Input Tax Credit (ITC) claim within four weeks after verifying submitted evidence like invoices and e-way bills. The ITC was earlier blocked due to doubts over a supplier’s registration. Justice C. Saravanan held that authorities cannot indefinitely withhold ITC once documentation supports genuine transactions. The court emphasised due process under Rule 86A of the CGST Rules and directed that a speaking order be passed after hearing the taxpayer. The ruling safeguards taxpayers against administrative delay and ensures timely disposal of ITC-related representations.