Unblocking of ITC on expiry of one year from the date of blocking

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..... xpiry of a period of one year from the date of blocking in case no action has been taken by the officers. It has been brought to notice by GSTN that in about 6414 GSTINs pertaining to Delhi State jurisdiction, ITC amounting to ₹ 2037.31 crs. has been blocked by the Delhi State GST officers which is lying blocked beyond a period of one year. In this regard, GSTN has already informed that they are contemplating to introduce the functionality of automatically unblocking of such ITCs, in view of the provision of sub rule (3) of Rule 86A , as mentioned above, which may result in such ITC becoming available to the taxpayers for utilisation. It is noticed that most of these taxpayers ITCs would have been blocked by the Proper .....

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..... lised towards payment of the demand created. b. In case, during the field visit the taxpayer is found existing, then a show cause notice ( DRC-01 ) should be issued proposing to create a demand by disallowing the ITC to the extent, fraudulently availed or for which the taxpayer is not eligible, keeping in view the provisions of clause (a) to (d) of sub rule (1) of rule 86A. Thereafter, DRC 07 should be issued, if no response or non satisfactory response is received, as per the law and finally, the blocked ITC should be unblocked and utilised towards payment of the demand created through DRC-07 . c. Here, it should also be kept in mind that earlier when the ITCs were blocked, some or all of these steps might have already b .....

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..... blocked ITC, after unblocking the same, against the demand created through DRC-07 are as under: Open https://boweb.internal.gst.gov.in/ Go to Services head and click to Get Taxpayer Details Get Taxpayer Details Enter GSTIN then Press GO Button Go to Click to Quick Link Button (on the right side of your screen) Go to Payment Towards Demand and view all outstanding demand And select your outstanding demand at Select Button Show your Outstanding Demand (₹) and fill your Amount intended to be paid (₹) Then fill your demand to Cash Ledger Balance/Credit Ledger Balance and press to Set-off Button then dema .....

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