Rule 86B implication on new registration

[Vivek Kumar]

My GST registration was on 20 Jan 2020. For FY 2019-20 i have paid Income tax of Rs. 95000/-. For 2020-21 I have paid income tax of Rs. 345000/-. Will Rule 86B will be applicable for FY 2021-22 as i haver taken registration late and considering the registration time in 2019-20 i have done business in 3 months and paid 95000/- as Income tax. And when business was growing i have paid income tax  as 345000/- in 2020-21. Please guide

AI Summary

Does Rule 86B apply to a taxpayer registered Jan 2020 despite income-tax payments before and after registration? A newly registered taxpayer asks if Rule 86B will apply for FY 2021-22 given registration in Jan 2020 and differing income-tax payments in FY 2019-20 and 2020-21. Rule 86B imposes restrictions on utilization of input tax credit where specified conditions (e.g., significant net cash tax liability relative to reported outward liability and suspicious GST behavior) are met; timing of income-tax payments before or after registration does not automatically exempt a registrant. Applicability depends on GST turnover, reported outward tax, ITC claimed, and meeting prescribed thresholds and exceptions; advise review of GST returns and consult a tax practitioner for precise application and compliance steps.