Input tax credit blocked under Rule 86A in Maharashtra?

What this means

Rule 86A lets an authorised officer stop the use of ITC in the electronic credit ledger when there are reasons to believe it was wrongly availed - for example from non-existent suppliers. The reasons must be recorded in writing, and the restriction lapses after one year. Courts have also held that only the credit actually available in the ledger can be blocked.

Common reasons businesses in Maharashtra get this

• ITC from suppliers later found to be non-existent or cancelled
• Invoices without actual movement of goods
• Large ITC from newly registered suppliers
• Supplier under investigation

Deadlines

• A Rule 86A restriction ceases after one year from the order
• Request for unblocking can be made as soon as you have proof
• Blocked ITC cannot be counted as appeal pre-deposit unless the block is lifted or modified

How we resolve it — without you visiting the department

• We obtain the blocking details and the reasons recorded
• We collect proof of genuine purchases - invoices, e-way bills, transport and payment
• We file a written representation for unblocking with that proof
• We follow up with the officer and seek a hearing where useful
• Where blocking is clearly beyond the law, we advise on further legal remedies

You never have to

• Stand in a queue at the ward or circle office
• Meet the officer yourself or attend the hearing
• Draft legal replies or work through portal forms
• Chase the department for an update — we follow up in writing and keep you posted

What to send us (on WhatsApp or email)

• Credit ledger screenshot showing the block
• Invoices, e-way bills and transport proof for the suppliers named
• Bank payment proof to those suppliers
• Any notice or communication received

What happens if you ignore it

Blocked credit cannot be used, so the business pays GST in cash every month the block stays - and the related demand notice usually follows.

Everything we do is through lawful, documented channels — replies on the portal, hearings and written submissions on record. A strong, documented reply is what closes matters quickly.