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

[KASTURI SETHI]

Not applicable.

[Sadanand Bulbule]

One word, full meaning.

[KASTURI SETHI]

Dear Sir Ji,  

Your style of concurrence/support/expression is always unique. It gives loud and clear message and goes deep into the heart of readers.

Thanks a lot, Sir.

[Sadanand Bulbule]

Much obliged for inspiring me Sirji. 

[Shilpi Jain]

Your per month GST liability does not exceed Rs. 50 lakhs. Hence this rule will not be applicable for you.

AI Summary

Rule 86B does not apply to late-registered taxpayer with reported GST liabilities far below Rs.50 lakh per month Registration was in January 2020 and income tax paid for FY 2019-20 was Rs.95,000 and for FY 2020-21 Rs.345,000; the registrant asked if Rule 86B applies for FY 2021-22 given late registration. Respondents concluded Rule 86B is not applicable because it targets taxpayers whose per-month GST liability exceeds Rs.50 lakh, and the registrant's reported tax figures indicate monthly GST liability well below that threshold. The forum responses therefore advised non-applicability.