Mandatory Requirement of Written 'Reasons to Believe' Under Rule 86A for Blocking ITC
Last updated: 13 November 2025
Court :
Allahabad High Court
Brief :
The Hon'ble Allahabad High Court in the case of Pilcon Infrastructure Pvt. Ltd. v. State of U.P. & Another [WRIT TAX No. 4654 of 2025, order dated October 29, 2025] held that blocking of Input Tax Credit under Rule 86A of the U.P. GST Rules without recording specific, written 'reasons to believe' linking the assessee to fraudulent transactions is without jurisdiction and illegal, emphasizing that mere reliance on ex parte communications or generic alerts from DGGI does not fulfil the statutory requirement.
Citation :
WRIT TAX No. 4654 of 2025, order dated October 29, 2025
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Bimal Jain
Published in GST
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