Answer

1. F

   Facts

   Not directly. Your customers' ITC depends on you reporting their invoices and paying your output tax. If you keep filing and paying in cash, their credit flows as usual.

2. P

   Provisions and law

   • Rule 86A(1), CGST Rules 2017Officer not below Assistant Commissioner may disallow debit of ITC, for recorded reasons, to pay any liability or claim any refund, where the credit looks fraudulent or ineligible on listed grounds
   • Sec 16(2), CGST Act 2017Conditions for ITC: invoice, receipt, tax paid by supplier, return filed
3. A

   Analysis

   Rule 86A affects only your ability to use your own credit. Your buyers need your invoices in their GSTR-2B and your tax actually paid under Sec 16(2). Example: you file GSTR-1 by the 11th and pay ₹3 lakh output tax in cash in GSTR-3B by the 20th; your buyers' ITC is unaffected. Problems start only if you stop filing or paying.

4. C

   Conclusion

   1. 1Keep filing GSTR-1 on time.
   2. 2Pay output tax in cash if credit is blocked.
   3. 3File GSTR-3B on time.
   4. 4Reassure key customers if they ask.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.