Re-Blocking Input Tax Credit Beyond One Year Without Fresh Material Held Unsustainable: Punjab & Haryana High Court
The Punjab & Haryana High Court has delivered an important judgment holding that tax authorities cannot indefinitely freeze a taxpayer’s Input Tax Credit. The decision, involving NB International, clarifies that repeated blocking of ITC on the same allegations without new material violates the limits set under the CGST Act, 2017 and CGST Rules, 2017. Background of the Case NB International, a manufacturer of brass and copper sheets and utensils, approached…
