𝐓𝐡𝐞 𝐋𝐚𝐰
Rule 86A was inserted w.e.f. 26.12.2019 vide CGST (Ninth Amendment) Rules, 2019 which permits to block the balance lying in credit ledger if the tax is not paid by vendor i.e., he has not filed Form GSTR-3B.
𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐢𝐥𝐢𝐭𝐲?
If a person has entered into transactions for the period prior to 26.12.2019 and that vendor has not filed GSTR-3B for the current tax period, the field formations are blocking the credit ledger. Is it right?
𝐎𝐮𝐫 𝐯𝐢𝐞𝐰
It should not be applicable as the tax in respect of impugned transaction has been paid. Even otherwise, the authorities shall first proceed against the supplier.