#GST #Notification 94/2020- Key Extracts CGST(Fourteenth Amendment) Rules 2020
Restriction on Utilization of Input Tax Credit (#ITC ) – Newly inserted Rule 86B
Restriction on Utilization of Input Tax Credit (#ITC ) – Newly inserted Rule 86B
Rule 86B shall be affected from 1st Jan 2021 wherein restriction has been placed on setting off more than 99% of tax liability from ITC where the value of taxable supplies other than exempt supply and zero rated supply exceeds Rs. 50 lakhs in a month.
Though few exceptions have been provided to this rule which are as follows:
(i)Where the taxpayer has paid Income Tax exceeding Rs. 1 lakh in two preceding financial year.
(ii)Where taxpayer has received refund exceeding Rs. 1 lakhs u/s 54 of CGST Act 2017.
(i)Where the taxpayer has paid Income Tax exceeding Rs. 1 lakh in two preceding financial year.
(ii)Where taxpayer has received refund exceeding Rs. 1 lakhs u/s 54 of CGST Act 2017.
(iii)Where taxpayer has used electronic cash ledger to pay of liability on outward supplies which cumulatively makes 1% of the total liability up to the said month
(iv)Where a person is a Government Department, Public Sector Undertaking (PSU) local authority or a statutory body
(iv)Where a person is a Government Department, Public Sector Undertaking (PSU) local authority or a statutory body
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