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ITC Blocked By Department for more than 1 Year

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..... ITC Blocked By Department for more than 1 Year
Query (Issue) Started By: - Vinay Kunte Dated:- 1-3-2021 Last Reply Date:- 2-3-2021 Goods and Services Tax - GST
Got 6 Replies
GST
The Department has blocked ITC on 26-01-2020 without any communication and even after 1 year the ITC is not unblocked. There have numerous exchange off letters with reconciliation statements and documentary ev .....

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..... idence for the ITC availed since then with the Jurisdictional Deputy Commissioner of Central Tax & C.Ex. Division, in this respect. What is the Legal action that can be pursued to get the ITC unblocked which otherwise causes great hardship in cash flow? Please given your valuable advice and guidance. Reply By KASTURI SETHI: The Reply: Sh.Vinay Kunte Ji, You have not mentioned about what was .....

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..... the reason for blocking ITC by the department. I am very much interest to know the basic reason. It is my view and observation and experience that the department does not block or withhold ITC without rhyme or reason. So my suggestion is as under :- Sincere Advice Do not think about legal action especially in view of the fact that the department is strong on legal aspect. Politeness, respect .....

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..... and sweet language can click if your docs are in order. Reply By Vinay Kunte: The Reply: Sorry to have missed that part. We had aviled ITC on Imports of goods but inadvertently the ITC was shown in row 4(5) of the ITC table of GSTR-3B Return instead of row 4(1) of the Return this has resulted in higher ITC availment than ITC available in GSTR-2A in April and May 2019 and the ITC was blocked in J .....

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..... an 2020 All the copies of BOE and payment challan with reconciliation of purchase ledger and GSTR 2A has been submitted Reply By Shilpi Jain: The Reply: Consider escalating the matter to higher officials i.e. Commissioner. Write a letter to him by marking the Deputy Comm. explaining the situation and hardship and also detailing the explanations and details that were already submitted to the dep .....

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..... artment. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: The reasons for blocking of ITC should be informed to the assessee by the Department. You may write a letter to the Authority for the reason of blocking of ITC. Reply By KASTURI SETHI: The Reply: It appears to be a procedural lapse. The department may take time to satisfy itself regarding genuineness and correctness of availment of ITC. .....

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..... There is no harm in meeting higher officers for redressal of your grievance. You must convince the higher officers about genuineness and correctness of ITC availed. I think your problem will be solved. I support the views of both experts. Reply By Vinay Kunte: The Reply: Thank you all for your valuable guidance and comments for future course to be adopted to get the issue resolved. We will once .....

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..... again approach the DC and if needed the commissioner office in this respect. Thank you again.
Discussion Forum - Knowledge Sharing .....

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