TaxTMI 
TaxTMI 
Applicability of Rule 86b i.e, 1% payment of tax in cash applicable to cess also?
X X X X Extracts X X X X
X X X X Extracts X X X X
....pplicability of Rule 86b i.e, 1% payment of tax in cash applicable to cess also?<br> Query (Issue) Started By: - Nikhil Ramnani Dated:- 14-7-2026 Last Reply Date:- 19-7-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Hi everyone, whether rule 86B which prescribes mandatory 1% payment of tax in cash is applicable to Compensation Cess charged on output supply? Reply By Raam Srinivasa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n Swaminathan Kalpathi: The Reply: As Cess is not levied under the provisions of CGST Act, 2017 the provisions of Rule 86B, in my opinion, will not apply. Reply By Sadanand Bulbule: The Reply: Rule 86B does not apply to Compensation Cess because the rule strictly restricts the discharge of "output tax" (defined only as CGST/SGST/IGST), whereas Cess is an independent levy governed by its own....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... parent Act and ring-fenced within its own credit pool. Reply By KASTURI SETHI: The Reply: Rule 86B is not applicable to Compensation Cess. Compensation cess is temporary and it is for specific purpose. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, Rule 86-B under GST prescribes that, Notwithstanding anything contained in these rules, the registered person shall not use the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....amount available in the electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month, exceeds fifty lakh rupees: Eligibility for ITC for Cess is also governed by Sec. 16(2). In case of ITC availed on Cess, the ITC at credit ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the ECL shall also apply to this condition of restricting to 99%. I request the Experts' clarification on my view. Reply By KASTURI SETHI: The Reply: Additional Information Cess or fee does not become part of "Consolidated Fund" and earmarked for purpose of services for which same levied - Cess can never become part of Consolidated Fund. [para 8]---CESTAT Mumbai in the case of STATE....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... STREET SYNTEL SERVICES PVT. LTD.Versus COMMR. OF CGST & C. EX., MUMBAI reported as 2019 (5) TMI 1568 - CESTAT MUMBAI Reply By Shilpi Jain: The Reply: Section 20 IGST makes provisions of CGST applicable to IGST. Payment is also one provision which is made applicable. 20. Application of provisions of Central Goods and Services Tax Act. Subject to the provisions of this Act and the rules....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... made thereunder, the provisions of Central Goods and Services Tax Act relating to,- (i) scope of supply; (ii) composite supply and mixed supply; (iii) time and value of supply; (iv) input tax credit; (v) registration; (vi) tax invoice, credit and debit notes; (vii) accounts and records; (viii) returns, other than late fee; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (ix) payment of tax; (x) tax deduction at source; (xi) collection of tax at source; (xii) assessment; (xiii) refunds; (xiv) audit; (xv) inspection, search, seizure and arrest; (xvi) demands and recovery; (xvii) liability to pay in certain cases; (xviii) advance ruling; (xix) appeals and revision; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (xx) presumption as to documents; (xxi) offences and penalties; (xxii) job work; (xxiii) electronic commerce; (xxiv) transitional provisions; and (xxv) miscellaneous provisions including the provisions relating to the imposition of interest and penalty, shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in relation to central tax as if they are enacted under this Act:<br> Discussion Forum - Knowledge Sharing ....