Recording of reasons key to block Input Tax Credit in Electronic Cash Ledger under GST, says Bombay HC

Experts say order brings clarity on number of issues Bombay High Court has held that adequate emphasis should be on not only ‘having reasons to believe’ to block Input Tax Credit (ITC) but also on ‘recording of the reasons’. Also, it said that blocked amount should not be more than the amount involved in fraud. Experts say this is very a important ruling as it brings clarity on many issues related…