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Rule 86B and it's exceptions

28 Feb, 2022
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Rule 86B

Registered person can not use ITC in excess of 99%

If value of taxable supply other than exempt supply and zero rated supply in a month exceeds 50 lakh rupees.

Restrictions shall  not apply if-

A-Prop. or Karta or MD or any two partner or WTD paid 1 lakh rupees of more income tax in previous 2 FY.

B-If RP receive refund of more than 1 lakh rupees in previous FY on account of unutilised ITC under clause (i) of first proviso of section 54(3).

C-If RP receive refund of more than 1 lakh rupees in previous FY on account  of unutilised ITC as per section 54 (3)(ii).

D-Cumulative balance of GST paid cash in current FY is already exceeds 1%.

E-If RP is-

1-Government Department 

2-PSU

3-LA

4-Statutory Body

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