CBEC-20/16/05/2021-GST/1552
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, dated 2nd November,2021
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Guidelines for disallowing debit of electronic credit ledger under Rule 86A of the
CGST Rules, 2017 -Reg.
Rule 86,4 of the Central Goods and Services Tax Rules, 2017 (hereinafter retbrred to as
“the Rules”) provides that in certain circumstances, Commissioner or an officer authorised by
him, on the basis of reasonable belief that credit of input tax available in the electronic credit
ledger has been fraudulently availed or is ineligible, may not allow debit ofan amount equivalent
to such credit in electronic credit ledger.
2, Doubts have been raised by the field formations on various issues pertaining to disallowing
debit of input tax credit from electronic credit ledger, under rule 86,4 of the Rules. Further,
Hon’ble High Courts in some cases have emphasized the need for laying down guidelines for the
purpose of invoking rule 86A. In view of the above, the following guidelines are hereby issued
with respect to exercise ofpower under rule 86,4 ofthe Rules: