TaxTMI 
TaxTMI 
One of my client has set off output tax with 100% ITC department issued notice to pay 1% cash.As per the frequent questions any month limit Rs.50 lakhs is not crossed but the turnover is more than Rs.6 crores in a financial year Rule 86B does not need to be complied with.If the turnover is less than Rs.6 crores in a financial year but the taxable supplies for any month exceeds Rs. 5o lakhs the Rule 86B stands attracted. I request the experts please clarify the issue how to proceed in the matter regarding if cash payment is made 1% how to get ITC
Rule 86B under CGST Act
07 Jun 2024 
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Cash payment under Rule 86B: a portion of tax must be paid in cash when monthly supplies exceed threshold.
Rule 86B requires taxpayers who exceed the monthly taxable-supplies threshold to remit a mandated cash component before availing input tax credit for that month; the monthly threshold - not annual turnover - determines applicability. The cash component is to be paid via the prescribed challan with interest, and any excess may be adjusted in the next month's return, with the cash requirement calculated on aggregate tax and allocable across tax heads. (AI Summary)
Rule 86B requires taxpayers who exceed the monthly taxable-supplies threshold to remit a mandated cash component before availing input tax credit for that month; the monthly threshold - not annual turnover - determines applicability. The cash component is to be paid via the prescribed challan with interest, and any excess may be adjusted in the next month's return, with the cash requirement calculated on aggregate tax and allocable across tax heads. (AI Summary)