TaxTMI 
TaxTMI 
TaxTMI 
Rule 86B of CGST Rules
X X X X Extracts X X X X
X X X X Extracts X X X X
....ule 86B of CGST Rules<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 20-8-2021 Last Reply Date:- 22-8-2021 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>As per Rule 86B of CGST Rules, if the income tax paid in the last 2 financial years is less than ₹ 1 Lac, such person can utilize only 99% of the output tax liability from credit ledger. Whether this rule is applicable....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for a company which is newly formed only in this financial year but had turnover in a month more than ₹ 50 Lacs but income tax paid is less than ₹ 1 Lac? Reply By Ganeshan Kalyani: The Reply: Sir, in my view, you may refer clause (d) of said rule 86B. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per the proviso to rule 86B the said restriction shall not apply where - (a)....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the said person or the proprietor or Karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file the return of income under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....subsection (1) of section 139 of the said Act has expired; Since the company is newly formed it would not have paid any income tax during the previous two years. Therefore if the income tax paid is less than 1 lakh the restriction prescribed is applicable Reply By Shilpi Jain: The Reply: Also the rule applies only if the taxable value in a month is more than rs. 50 lakhs<br> Discussion Forum - ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Knowledge Sharing ....