Blocking of ITC started against fake invoices : CBIC Circular

To implement the facility to block ITC against fake invoices or invoices issued without receipt of goods or services, all the CGST Zones are required to make list of fake credit availers GSTN-wise and block their ITC for the entities located in their jurisdiction. The circular has been issued by the Directorate General of GST Intelligence (HQRS) provides the procedure for GST Authorities to operationalize the scheme of blocking/unblocking of ITC.

DIRECTORATE GENERAL OF GST INTELLIGENCE (HQRS)
2nd floor, West Block 8, Wing 6,Sector 1, R.K. Puram, New Delhi

F.No. 587/CE/167/Pol/2019/11219-11269

Dated: 13.01.2020

All Principal Chief Commissioners/ Chief Commissioners, CGST
All Director Generals, DGGI, North/South/West and East.
All Principal ADG’s/ ADG’s, Zonal units, DGGI

Sir/ Madam

Subject: Blocking of Input Tax Credit under rule 86A(1)(a) of CGST Rules, 2017- reg.

Attention is drawn to the provisions of Rule 86A(1)(a) of the Central Goods and Service Tax Rules, 2017 which empowers the CGST officers to block input tax credit (ITC) under certain circumstances.

2. All the Zonal Chief Commissioners have the facility to block/unblock ITC availed in a situation covered under Rule 86A(1)(a) of the CGST Rules, 2017 i.e. against fake invoices or against invoices without receipt of goods or services or both, if such availers of credit are located in their jurisdiction. To implement this provision, all the CGST Zones are required to make a list, GSTN-wise of fake credit availers and block their ITC under Rule 86A(1)(a) for the entities located in their jurisdiction. If, however, there are certain entities which are located outside their jurisdiction, they should forward a list of such availers along with GSTN No. to the local office of the Pr.ADG/ADG DGGI, with a request to block credit of such GSTN immediately.

3. To operationalize this scheme, it is requested that each Pr. Chief Commissioner/ Chief Commissioner in its zone should appoint an officer of the rank of Dy. Commissioner/A.C., as a nodal officer, assisted by few more officers, who should undertake this activity. Similarly, all the 26 Pr.ADG/ADG, DGGI, spread all over India, should also make a Cell in their zone head office nominating one AD/DD rank officer as nodal officer assisted by a few other officers to block the credit of such availers received from their zonal CGST Chief Commissioner, who are located outside the jurisdiction of the concerned CGST Zone.

4. All Zonal Pr.CC/CC are requested to make the aforesaid list positively by 3 PM on 15.1.2020 and complete the credit blocking by 17th January, 2020 positively. Similarly, they should ensure that the list of outside availers is received by the concerned Pr. ADG/ADG DGGI positively by 15th January on which Pr. ADG/ADG DGGI should complete the action by 17th January, 2020. All Pr. ADG/ADG, DGGI should also undertake similar exercise for the cases booked by them and complete the same, latest by 17th January, 2020.

5. All the nodal officers, either of CGST Zones or ADG DGGI offices, are requested to get in touch with the Pr. DG Systems office and get the aforesaid facility of blocking ITC operational in their name immediately.

6. All the zonal Chief Commissioners and Zonal Pr. ADG/ADG, DGGI will submit a daily report to the Pr. DG, DGGI HQ, New Delhi in enclosed proforma at e-mail i.d. manishk.yadav@gov.in and ajay.luhach@gov.in

7. This issues with the approval of competent authority.

Yours faithfully
(A.K. Pandey)
Pr. DG, DGGI

DESPATCHED No.: 11219-11269

DATE: 14/01/2020

Annexure A

For Credit availers in the jurisdiction of the same CGST Zone

Annexure B

For Credit availers outside the jurisdiction of the CGST Zone