Restrictions on use of amount available in electronic credit ledger
Rule 86B of the Central Goods and Services Tax Rules, 2017 deals with restrictions on use of amount available in electronic credit ledger. Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. The Act came into force on 22 Jun 2017.
Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month exceeds fifty lakh rupees:
Provided that the said restriction shall not apply where - (a) the said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file return of income under subsection (1) of section 139 of the said Act has expired; or (b) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54 ; or (c) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54 ; or (d) the registered person has discharged his liability towards output tax through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year; or (e) the registered person is - (i) Government Department; or (ii) a Public Sector Undertaking; or (iii)a local authority; or (iv) a statutory body:
Provided further that the Commissioner or an officer authorised by him in this behalf may remove the said restriction after such verifications and such safeguards as he may deem fit.]
Amendment notes
1. Inserted (w.e.f. 01.01.2021) vide Notification No. 94/2020 - CT dated 22.12.2020.
Rule 86B, The Central Goods and Services Tax Rules, 2017 (Act G.S.R. 610(E) of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Questions about Rule 86B
What does Rule 86B of the Central Goods and Services Tax Rules deal with?
Rule 86B of the Central Goods and Services Tax Rules is headed "Restrictions on use of amount available in electronic credit ledger". Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent.
How do I find court cases under Rule 86B of the Central Goods and Services Tax Rules?
In judgments and charge sheets this rule is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Rules 2017 86B, rule 86B CGST Rules 2017, rule 86B of the Central Goods and Services Tax Rules. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Rule 86B of the Central Goods and Services Tax Rules, and has it changed?
Its own text turns on rule 54 (Tax invoice in special cases), so none of them can safely be read on its own.
When did Rule 86B of the Central Goods and Services Tax Rules come into force?
Rule 86B of the Central Goods and Services Tax Rules, cited as CGST Rules 2017 86B, came into force on 22 Jun 2017, having been enacted on 19 Jun 2017. It is in force as at the date shown on this page.
Other rules of this Act
- 89. Application for refund of tax, interest, penalty, fees or any other amount3731 words
- 43. Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases3015 words
- 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill2970 words
- 42. Manner of determination of input tax credit in respect of inputs or input services and reversal thereof2706 words
- 164. Procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section2150 words
- 8. Application for registration2144 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Parsed from the consolidated PDF published by CBIC at taxinformation.cbic.gov.in. The provision list against which this parse was checked comes from the same portal, so a rule the document omits is still recorded. This page is not a substitute for legal advice.