Rule 86B - An analysis
The government introduced GST explaining that it is good and simple tax to eradicate the cascading effect of various indirect tax legislations in the country, but after introduction of GST, the government took various measures to curb the fake ITC frauds but while doing so government did not even bother about what is the impact of such measurers to the innocent and regular tax payers. One such rule introduced in GST law is Rule 86B. Rule 86B. Restrictions on use of amount available in electronic credit ledger Before going into the deep dive of Rule 86B, I hereby would like to mention entire rule 86B for your reference. 86B. 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. of such tax liability, in cases where the value of taxable supply other than...