TaxTMI 
TaxTMI 
Rule 86B Annual payment of 1% differential liab
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....ule 86B Annual payment of 1% differential liab <br> Query (Issue) Started By: - ARVIND JAIN Dated:- 29-1-2026 Goods and Services Tax - GST <br> Got 6 Replies <br> GST<br> <br> As per Rule 86B of GST, dealer has to pay 1% of input via the cash ledger only on a monthly basis. but dealer has paid it on lumpsum basis at year end, Is this allowable or does differential tax have to be paid via DRC 03 fo....
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....r shortfall in monthly payments? This point was raised in GST Audit visit, in Actual for respective FY 21-22 no tax was payable and the dealer has paid it all together in March 22 (as per monthly total difference) instead of monthly. No change in total figure. Any remedy now? Can we claim it as a refund for tax paid by filing RFD form. --Reply By: ARVIND JAIN The Reply: Thanks to all for ....
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....your review and feedback on the issue. --Reply By: Ganeshan Kalyani The Reply: If no tax was payable then the tax paid is merely a payment. You can seek refund u/s 54. --- Sub-Reply By: ARVIND JAIN The Sub-Reply: Tax was payable but as per rule it should be monthly and we paid at year end in March --Reply By: KASTURI SETHI The Reply: Only interest is payable for delaye....
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....d payment of tax in cash. No issue of refund arises. Being a minor procedural lapse, the party may request for waiver of penalty taking shelter of Board's circular and case laws available on the ground of minor procedural lapse. The element of ""evasion" does not exist in this scenario. --Reply By: Sadanand Bulbule The Reply: Since the liability was eventually met, you cannot claim a refu....
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....nd, but you should argue that the monthly delay is a procedural lapse rather than tax evasion to waive potential interest or penalty. --Reply By: Shilpi Jain The Reply: Also have a look at this decision AM Enterprises - 2024 (9) TMI 1485 - HIMACHAL PRADESH HIGH COURT which has noted that this rule is ultra vires. <br>***<br> Discussion Forum - Knowledge Sha....
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