1. Definition OF G.S.T. input tax credit rules in India

See, Provision has made in the law to learn G.S.T. input tax credit rules in India. on completion of delivery of goods or services that there no double burden of tax in the transaction of goods or services in G.S.T.

An essential condition for obtaining an input tax credit that the goods or services must have actually sold, the goods or services must have been obtained in G.S.T.

The tax on the sale of goods or services must paid in full by the supplier.

2. Validity of gst input tax credit rules in India

The government has introduced Rule 86-A in a situation where the use of such input tax credit is not accepted as an obligation to pay G.S.T. tax if a tax credit is sought on the basis of a bogus bill that is primarily questionable.

3. Investigation of gst input tax credit rules in India

Based on the company's demand regarding I.T.C., the officer launched an investigation. In which, he found that some traders were involved in the activity of issuing tax invoices only to the producers of steel goods and the company had received such invoices from such people.

The goods were seized the input tax credit officer without any transaction and further investigation revealed that such tax credit was not due to the company.

4. Kind of I.T.C.

In cases where the bill appears to be bogus first glance and the officer has received his information.And the decision to be approved by the officer but the decisions of the officer can be challenged in the higher forum on the basis of the provisions of constitutional rights. The Hon'ble Gujarat High Court has also asked the authorities to be careful while exercising their powers.

5. Search & Order of I.T.C.

Input tax credit and transactions were not consistent when the officer went to the company's business premises and checked the transactions. Then after, the officer forced the company to pay Rs 25 lakh during the investigation and also blocked the input tax credit of Rs 84 lakh as per the provisions of Rule 86A of GST. In another related case, Rs 7.65 crore was deducted from the input tax credit ledger for the same reason. GST The steps taken by the officer against the company were challenged in the Hon'ble Gujarat High Court

6. Case study of I.T.C.

We will try to understand this situation on the basis of the judgment of the Hon'ble Gujarat High Court in the case number S.C.A. 8841 of 2020 of S.S. Industries v. Union of India. In the present case.

the company T.M.T. Manufactures bars, G.S.T. The company claimed input tax credit (I.T.C.) on the basis of tax invoices as per the rules laid down in the law.

7. Court observation under I.T.C.

As per the study of the decision of the Hon'ble Gujarat High Court, it is not necessary to issue notice or report before exercising the power vested under Rule 86/A.

Under this rule the officer must have sufficient and definite reason to believe. An officer cannot act on the basis of presumption alone; Officers are not liable to give reasons for action taken under Rule 86/A.

But if the authority of the officer is challenged, the officer has to disclose the basis on which the action has been taken. This 86A rule should not be used to annoy a trader

8. conclusion of I.T.C.

Interpreting the decision of Hon'ble Gujarat High Court, Input tax credit can be blocked under rule-86A in the following circumstances.

1.Not doing business as stated by the supplier at the registered place or the business stated by him does not exist

2.Neither the goods nor the services have been received and input tax credit has been sought on the basis of tax invoice or debit note.

4.The tax payable by the supplier has not been deposited in the government treasury

5.No goods or services have been accepted at the place of registered business or the registered business does not exist

5.Input tax credit is required even if there is no invoice, debit note or other paperwork as per the rules.

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