CBIC tightens norms to bar input tax credit

The norms laid down five specific circumstances in which such credit could be blocked by a senior tax officer.

The CBIC has come out with norms on blocking of tax credit by GST field officers, saying that such blocking should be on the basis of ‘material evidence’ and not just out of ‘suspicion.’

The norms laid down five specific circumstances in which such credit could be blocked by a senior tax officer. These include invoices on which GST has not been paid by sellers.

The Central Board of Indirect Taxes and Customs (CBIC) said the commissioner or an officer authorised by him, not below the rank of assistant commissioner, must form an opinion for blocking of input tax credit (ITC) only after ‘proper application of mind’ considering all the facts of the case.