Block ITC only on the basis of evidence: CBIC to GST officers

Till early last month, taxmen had blocked Rs 14,000 cr worth of ITC

NEW DELHI: The CBIC has come out with guidelines on blocking of tax credit by GST field officers, saying that such blocking should be on the basis of ‘material evidence’ and not just out of ‘suspicion’.

The guidelines laid down five specific circumstances in which such credit could be blocked by a senior tax officer. These include availment of credit without any invoice or any valid document, or availing of credit by purchasers on invoices on which GST has not been paid by sellers.

The Central Board of Indirect Taxes and Customs (CBIC) said the commissioner, or an officer authorised by him, not below the rank of assistant commissioner, must form an opinion for blocking of input tax credit (ITC) only after “proper application of mind” considering all the facts of the case.