Credit ledger · Rule 86A
Input tax credit blocked under rule 86A: your response kit
Rule 86A lets an officer stop you using credit in your electronic credit ledger on stated grounds. The rule has no form of its own, so this kit explains the rule and what you can do.
Subsidy Setu is a private platform, not a government website. We are not a government body and are not affiliated with, endorsed by or acting for any government department, scheme authority or bank. Applications are made on the official portals or with the lender you choose.
What it is
The Commissioner, or an officer authorised by him who is not below the rank of Assistant Commissioner, may disallow the debit of an amount of input tax credit from the electronic credit ledger, for reasons recorded in writing. The rule was inserted by Notification 75/2019-CT of 26 December 2019.
CGST Rules, rule 86A(1) · source listed below
The grounds are: the supplier does not exist, the goods or services were not received, the supplier has not paid the tax, or there is no tax invoice.
CGST Rules, rule 86A(1)(a)-(d) · source listed below
There is no form for the restriction: it is imposed by the officer's recorded reasons, not by a numbered form.
CGST Rules, rule 86A; no form in the CBIC form list · source listed below
Your rights
The officer may allow the debit once he is satisfied that the conditions for disallowing it no longer exist. You can write to the officer with evidence that they no longer exist.
CGST Rules, rule 86A(2) · source listed below
The restriction lapses one year from the date it was imposed.
CGST Rules, rule 86A(3) · source listed below
The reasons for the restriction must be recorded in writing.
CGST Rules, rule 86A(1) · source listed below
Your duties
The blocked credit cannot be used to pay tax or claimed as a refund until it is released or one year passes. The rule itself provides no objection period and no hearing step.
CGST Rules, rule 86A(1)-(3) · source listed below
What to do now
- Find the amount blocked, the date and the ground the officer gives, and ask for the reasons recorded in writing if you do not have them.
- Match each ground to your records: proof the supplier exists and is registered, proof you received the goods or services, proof the supplier filed and paid, and the tax invoice.
- Write to the officer with the evidence and ask for the debit to be allowed.
- Diarise one year from the date of the restriction, when it lapses.
- Ask our expert team to review the evidence before you write.
These steps are practical suggestions from our expert team, not statements of law.
Documents to keep ready
Your ticks stay in this browser only. Nothing is saved on our servers.
Key time limits
| For | Time limit | Provision |
|---|---|---|
| Objection or hearing period | Time limitNone in the rule | Provision and sourceCGST Rules, rule 86A |
| Duration of the restriction | Time limitIt lapses one year from the date it was imposed | Provision and sourceCGST Rules, rule 86A(3) |
The date or period stated in your own notice or order always applies.
What can happen next
- Release by the officerThe officer may allow the debit once satisfied that the conditions no longer exist (Rule 86A(2)).
- Lapse after one yearThe restriction ends one year from the date it was imposed (Rule 86A(3)).
Facing this right now? Our expert team calls you back
Leave your name and mobile number. Our team calls you back within one working day (Monday to Saturday).
Your details are never sold; they are shared only as our Privacy Policy describes.
Recommended, not yet law
The 57th GST Council (8 October 2026) recommended an objection and personal-hearing mechanism against blocking of ITC. This is a recommendation, not yet law, and the rule today has no such step.
Press release of the 57th GST Council meeting, para B3-14 · source listed below
Frequently asked questions
Who can block my input tax credit under rule 86A?
The Commissioner, or an authorised officer not below the rank of Assistant Commissioner, for reasons recorded in writing.
On what grounds can credit be blocked?
The supplier does not exist, the goods or services were not received, the supplier has not paid the tax, or there is no tax invoice.
Is there a notice or a hearing before credit is blocked?
The rule provides no objection or hearing step. The 57th GST Council recommended one on 8 October 2026, but that is a recommendation, not yet law.
How do I get the credit released?
Write to the officer with evidence that the conditions no longer exist. The officer may allow the debit once he is satisfied.
How long does the block last?
The restriction lapses one year from the date it was imposed.
Official sources
- CGST Rules 2017, rule 86A (conditions of use of the electronic credit ledger)Read on 24 October 2026
- Recommendations of the 57th Meeting of the GST Council, 8 October 2026 (press release)Read on 21 October 2026
General information from the Acts, Rules, circulars and instructions named beside each point, not legal advice. The dates and periods stated in your own notice or order always apply. Our expert team can read your documents with you.