GST: Negative blocking of ITC not allowed, rules Gujarat HC

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The Gujarat High Court ruled that negative blocking of ITC is not allowed.


The writ applicant is a private limited company. The Company is engaged in the business of manufacture and sale of MS Billets. It is not in dispute that the Company is registered under the GST Act. At the relevant point of time when the writ applicants attempted to file their return for the month of September 2021, there was no credit balance in the electronic credit ledger. Despite the same, the portal displayed a message that the electronic credit ledger had been blocked by the respondent. It was further noticed by the writ applicants that a negative balance had been entered in their electronic ledger by the respondent. 

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In such circumstances and as a result of such a negative balance, if the writ applicants would file a return for the month of September 2021 by claiming an input tax credit, the writ applicants would be required to pay an additional amount of output tax under the provisions of the read more here

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Riya Pandey
Riya Pandey
The Co-Founder of LawEpic, Riya Pandey likes to share authentic and useful information for Law Students, Lawyers, Aspirants. She is a Law Graduate from the University Of Lucknow.