Text
The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Rules as published in the Gazette of India is the legal source.
Rule 86A, verbatim (show)
1[Rule 86A. Conditions of use of amount available in electronic credit ledger.-
(1) The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as- a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36- i. issued by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or ii. without receipt of goods or services or both; or b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 in respect of any supply, the tax charged in respect of which has not been paid to the Government; or c) the registered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or d) the registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed under rule 36, may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of any liability under section 49 or for claim of any refund of any unutilised amount.
(2) The Commissioner, or the officer authorised by him under sub-rule (1) may, upon being satisfied that conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit.
(3) Such restriction shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction."]
1. Inserted vide Notification No. 75/2019 - CT dated 26.12.2019.
Sub-rule (1)
86A(1)Authority and reasons
not below the rank of an Assistant CommissionerRule 86A(1)
The Commissioner may act, or authorise an officer meeting the rank requirement. The power requires reasons to believe that the available credit is fraudulent or ineligible on a listed ground and written reasons for the restriction.
Questions to answer on the file17 questions
86A(1)(a)-(d)Specified grounds
without receipt of goods or services or bothRule 86A(1)(a)-(d)
Document-based grounds include a supplier found non-existent or not operating from any registered place, non-receipt and unpaid tax on the supply. Other grounds address a similarly non-existent or non-operating credit recipient and absence of the prescribed invoice, debit note or Rule 36 document.
86A(1) concluding wordsExtent and purpose
not allow debit of an amount equivalent to such creditRule 86A(1) concluding words
The stated limit is an amount equivalent to the identified credit. The restriction concerns section 49 liability discharge or a claim for refund of an unutilised amount.
86A(2)Allowing debit again
conditions for disallowing debit of electronic credit ledger as above, no longer existRule 86A(2)
The Commissioner or authorised officer may allow debit on being satisfied that the relevant conditions have ceased. This release route depends on that satisfaction.
Questions to answer on the file4 questions
86A(3)Expiry
after the expiry of a period of one year from the date of imposing such restrictionRule 86A(3)
The expiry period runs from imposition of the particular restriction. Cessation under this sub-rule is separate from earlier release based on changed conditions.
Questions to answer on the file3 questions
Frequently asked questions
Can any officer impose the restriction?
The Commissioner may act or authorise an officer not below Assistant Commissioner. The stated reasons-to-believe and written-reasons requirements also apply.
Rule 86A(1)
What amount does the restriction address?
The concluding words of sub-rule (1) specify an amount equivalent to the identified fraudulent or ineligible credit for the stated debit purposes.
Rule 86A(1)
How can the restriction end?
The authority may allow debit when satisfied that the conditions no longer exist. The restriction also ceases after the stated one-year period from imposition.
Rule 86A(2)-(3)
Amendment history
The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change |
|---|---|
| 1 | Inserted vide Notification No. 75/2019 - CT dated 26.12.2019.[2] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Rule 36 | this provision requires Rule 36 | 86A(1) "any other document prescribed under rule 36" |
| Section 49 of the CGST Act, 2017 | this provision requires Section 49 of the CGST Act, 2017 | 86A(1) "discharge of any liability under section 49" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Notifications (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 94/2020-Central Tax | 22 December 2020 | Seeks to make the Fourteenth amendment (2020) to the CGST Rules, 2017. |
See also
- Rule 36 of the CGST Rules, 2017: documentary requirements and conditions for claiming input tax credit
- Section 49 of the CGST Act, 2017: payment of tax, interest, penalty and other amounts
- Rule 86 of the CGST Rules, 2017: electronic Credit Ledger
References
- Central Board of Indirect Taxes and Customs. "Rule 86A. Conditions of use of amount available in electronic credit ledger". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
- Notification No. 75/2019-Central Tax, dated 26 December 2019: Seeks to carry out changes in the CGST Rules, 2017. Cited in CBIC footnote 1.
External links
- CGST Rules, 2017, Rule 86A on the CBIC tax information portal