Madras HC upholds state GST authorities' power to block ECL for errant firms

CHENNAI: In a significant verdict, the Madras High Court has upheld the authority of the State Goods and Services Tax (GST) authorities to block the electronic credit ledger (ECL) of firms found wrongfully availing input tax credit (ITC) until investigations are completed. “This Court is of the considered view that the negative blocking is well within the scope of provisions of Rule 86A of G…