The Haryana Government has issued the guidelines regarding circumstances in which Input Tax Credit has to be blocked from electronic credit ledger. The system integrator of the department has developed a backend application for blocking and unblocking of Input Tax Credit for the Electronic Credit Ledger taxpayer. This functionality of blocking and unblocking Input Tax Credit is an important tool for safeguarding revenue particularly in case of fraudulent activities by the taxpayer.
The following are the situations where Input Tax Credit can be blocked:
- Full amount of Credit available in Electronic Credit Ledger of the taxpayer should be blocked instantly in case where the registered taxpayer are found to be bogus or fake as a result of any investigation or intelligence.
- Full amount of credit should also be blocked in cases the firms have been found non – functional.
The other points can be accessed from the guidelines issued by the Government: http://www.a2ztaxcorp.com/wp-content/uploads/2018/11/haryana-govt-issues-guidelines-regarding-circumstances-in-which-itc-has-to-be-blocked.pdf