Rule 86A - Credit Restrictions Get a Formal Objection Route

From 1 April 2027, restrictions under Rule 86A must follow a prescribed procedural route. The restriction order is issued in FORM GST DRC-26; the registered person may object in FORM GST DRC-27; and the proper officer must provide a reasonable opportunity of being heard before issuing the decision in FORM GST DRC-28. The restriction ceases upon the earlier of expiry of one year from the order or the proper officer permitting debit because the conditions for the restriction no longer exist. The amendment formalises the challenge process, but does not automatically invalidate a restriction or establish the eligibility of the underlying ITC.