TaxTMI 
TaxTMI 
Interpretation of Rule 86B - Whether
X X X X Extracts X X X X
X X X X Extracts X X X X
....nterpretation of Rule 86B - Whether<br> Query (Issue) Started By: - vaibhav agrawal Dated:- 11-7-2026 Last Reply Date:- 12-7-2026 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Experts, I seek your views on the interpretation of clause (a) of the first proviso to Rule 86B of the CGST Rules, 2017. Clause (a) provides that Rule 86B shall not apply where the registered person or t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he specified persons have paid income tax exceeding Rs. 1 lakh in each of the "last two financial years for which the time limit to file return of income under section 139(1) of the Income-tax Act has expired." The issue is whether the above expression has to be interpreted: • Dynamically with reference to each tax period (month) in which Rule 86B is to be applied; or â€....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Once at the beginning of the financial year (say, in April), and the same two financial years continue to apply throughout that GST financial year. For example, while examining the applicability of Rule 86B during FY 2026-27, should the exception under clause (a) be tested separately for each month? This question arises because the due date under section 139(1) for filing the income-tax retur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n for FY 2025-26 may expire during FY 2026-27. Consequently, from that date onwards, the expression "last two financial years for which the time limit... has expired" would appear to refer to a different set of financial years. In other words, should the relevant two financial years change during the course of the GST financial year upon expiry of the income-tax return due date, or should they ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....remain fixed for the entire financial year based on the position prevailing in April? Reply By Sadanand Bulbule: The Reply: The exception under Rule 86B applies dynamically to each tax period (month) based on the exact date of filing. Because the law uses the present perfect tense ("has expired"), the relevant look-back block of the "last two financial years" shifts automatically the moment a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... new Income Tax return due date passes mid-year, rather than remaining fixed from April. Reply By KASTURI SETHI: The Reply: Legal meaning of "Financial Year" cannot be disturbed. Reply By Sadanand Bulbule: The Reply: Sir's reply is icing on the cake. Reply By Sadanand Bulbule: The Reply: Sir's reply is icing on the cake. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... I agree with the view of Sri Kasthuri Sethi Ji. Two financial years continue to apply throughout that GST financial year. Reply By KASTURI SETHI: The Reply: Thanks a lot, Sir. Reply By KASTURI SETHI: The Reply: Thanks a lot, Sir.<br> Discussion Forum - Knowledge Sharing ....