GST collections is falling month by month, devising methods for a higher collection resorted from October 2019 onwards. It started with imposing restriction of 20% in ITC offsetting and with effect 01.01.2020 it was reduced to 10%. Such restriction and imposts breaks the chain of seamless flow of ITC and defeats the very spirit and purpose of GST. In addition to this, new Rule 86A has been inserted in CGST Rules imposing a restraint for ITC availment wherein the supplier has not paid tax. As per the new provision, if the supplier has not paid the tax, Commissioner or an officer authorised by him in this behalf may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for the discharge of any liability. They may, upon being satisfied that conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit and such restriction shall cease to affect the expiry of a period of one year from the date of imposing such restriction. Many taxpayers were shocked and surprised to see that Department initiated an automatic block of the ITC available in the Electronic Credit Ledger simply for the reason that there is a mismatch in the figures of GSTR-2A owing to non-filing of Returns or delayed filing of Returns. The concept of erstwhile Modvat, Cenvat or the present ITC in GST is an instrument for meeting tax obligations. The most obvious method of doing so is payment from the accumulated value which by universal system is measured as money. The so-called ITC is having an identical statutory recognition though it is restricted to the payment of tax. Failure to perceive this context and its versatility limit the vitality of this tool distorts tax administration and relegates legislative intent to nothingness. Another disparity at this juncture is that for qualifying the entitlement to ITC, the tax charged in respect of the supply has been paid to Govt. A person can claim a certain percentage of the ITC for which neither GSTR-1 nor tax payment through GSTR-3B is filed. The department cannot, artificially by acting contrary to the fundamental spirit and object of the law, devise ways to deny the benefit, which the substantive provisions of the law confer on the taxpayers.