Rule 86A CGST Rules | Credit Ledger Can't Be Blocked For More Than One Year : Delhi High Court

Delhi High Court ruled that GST authorities cannot block credit in electronic ledgers under Rule 86A of CGST Rules for more than one year. The judgment clarifies the temporal limits on such blocking actions, preventing indefinite freezes that could cripple businesses. The court held that extensions beyond one year require fresh material evidence, not mere reiteration of original grounds. This decision balances revenue protection with taxpayer rights, ensuring blocking orders don't become permanent without proper justification.