Find
No. Rule 86B limits using ITC to 99 percent of output tax for some businesses with high monthly taxable supplies, so about 1 percent is paid in cash. Rule 86A is an officer's block on suspect credit.
GST
Difference between Rule 86B and Rule 86A
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Provisions
Rule 86A(1), CGST Rules 2017; Rule 86B, CGST Rules 2017
Analysis
Rule 86B applies automatically to a business with taxable supplies over ₹50 lakh in a month, unless an exception applies, such as income tax paid above a limit or refunds received. Rule 86A needs an officer's recorded reasons. Example: output tax ₹10 lakh under Rule 86B means at least ₹10,000 in cash. Check the exceptions with your CA before assuming either rule applies.
Close
- Check whether your monthly taxable supplies exceed ₹50 lakh.
- Check the Rule 86B exceptions that may apply.
- Pay the minimum cash portion if Rule 86B applies.
- Treat any officer block separately under Rule 86A.
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