The norms stipulate five specific circumstances in which such credit can be blocked by a senior tax officer.
The CBIC has come up with the norms for blocking of tax credits by the officials of the GST sector, stating that such interception should be on the basis of ‘material evidence’ and not merely on the basis of ‘suspicion’.
The norms stipulate five specific circumstances in which such credit can be blocked by a senior tax officer. These include invoices on which GST has not been paid by the sellers.
The Central Board of Indirect Taxes and Customs (CBIC) has said that the commissioner or an officer authorized by him, not below the rank of an assistant commissioner, has a ‘reasonable application of mind’ to block the input tax credit (ITC). Only after that an opinion should be formed. In view of all the facts of the case.
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