ITC Mismatch & Fake ITC

Rule 86A lets the department block credit it believes is ineligible or fraudulently availed, for up to a year. We challenge the blocking by establishing the genuineness of the transactions and the eligibility of the credit, and press for early unblocking of your electronic credit ledger.

Not necessarily. Many mismatches are timing differences or supplier-side errors. We reconcile the data and, where the credit is genuine and the conditions of Section 16 are met, defend your entitlement rather than accepting an automatic reversal.

Section 16(2)(c) is often invoked, but there is strong judicial support that a bona fide buyer who has paid the supplier and holds valid documents should not be denied credit for the supplier's default. We build the genuine-buyer defence on this line of precedent.

Fake ITC refers to credit availed on invoices without an actual supply of goods or services, often from non-existent suppliers. It carries serious consequences including reversal, heavy penalty and possible prosecution. We defend by proving the reality of the transactions - the goods, the movement and the payment.

Where the transactions are genuine and properly documented, we work to establish that at the earliest stage and to resist escalation. Each case turns on its facts, and we advise honestly on the exposure and the best course.

We charge transparent, agreed professional fees based on the dispute and the work involved, discussed upfront.