Rule 86B - Restrictions on use of amount available in electronic credit ledger

Restriction on input tax credit use: electronic credit ledger cannot fully discharge output tax when monthly taxable supplies exceed the prescribed threshold.

Rule 86B restricts use of the electronic credit ledger to discharge output tax where monthly taxable supplies (excluding exempt and zero-rated supplies) exceed a specified threshold, capping the proportion of output tax payable from input tax credit. Exceptions include taxpayers meeting income tax payment criteria for key persons, recipients of refunds of unutilised input tax credit in the preceding year, registrants who have cumulatively used the electronic cash ledger above a prescribed share of output tax, specified public entities, certain non-manufacturers for specified goods, and discretionary removal by the Commissioner after verification.