In writ petition pertaining to negative blocking of Electronic Credit Ledger (ECrL), SC issues notice noting ‘conflict’ between Delhi HC judgment in Best Corp Science and Madras HC judgment in Skanthaguru Innovations; On scope of Rule 86A, while Delhi HC comprehending the phrase ‘amount equivalent to such credit’ appearing in Rule 86A decisively held that the Rule can only block existing ITC, not a negative balance in ECrL, Madras HC ruled that negative blocking of ITC is permissible under Rule 86A of the CGST Rules; Interpreting the phrase ‘‘credit of ITC available in ECL’ appearing in Rule86A, Madras HC held that ““ITC has to be available in the ECL, at any point of time, for the purpose of debiting the ECL”; SC has condoned delay of 78 days and posted the matter in August, 2025
