Revenue cannot ‘Negatively Block’ Tax beyond Extent of GST ITC available in E-Ledger: Supreme Court declines to Interfere with Delhi HC Ruling

The Supreme Court has declined to interfere with a Delhi High Court ruling that Revenue "cannot negatively block tax beyond the extent of GST ITC available in e-ledger." This significant decision protects taxpayers from excessive blocking of Input Tax Credit (ITC) by tax authorities. It means the department cannot restrict more credit than what is actually available in a taxpayer's electronic ledger. The Supreme Court's endorsement of the Delhi High Court's stance provides clarity and relief to businesses, preventing arbitrary and disproportionate actions by the tax department regarding ITC.