CGST Act 2017, has inserted a new rule of 86B and is effective from 01.01.2021. As per the rule, Taxable persons can use Electronic credit ledger for making payment of Outward Tax liability upto 99% of the outward tax. and 1% is compulsorily to be paid from Cash ledger. However this provision shall not be applicable in case of,
1) Value of Domestic Supply (excluding Exempt Supply) for a GSTN is below 50 Lac, for current Month.
2) Income tax Paid is more than 1 Lac Rs for last Two financials Year, for which due date under Sec 139(1) of Income tax act 1961, is expired by,
a) In case of Proprietorship:- By the Proprietor.
b) Firm / LLP:- Any Two partners.
c) Company :- Any two Whole time directors.
d) AOP/ Trust:- Any two members of the Managing committee/ Board of Trustee.
e) HUF:- Karta
3) Received a refund for Rs 1 lac or above for Export under LUT or Inverted duty structure.
4) Discharged monthly output tax liability through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year;
5) registered person is
(i) Government Department; or
(ii) a Public Sector Undertaking; or
(iii) a local authority; or
(iv) a statutory body:
Since the Due date for non tax audit cases for the FY 2022-23 was completed and Tax audit cases are about to be completed, everyone is needed to revisit the compliance .
Considering the above Conditions, template is designed and attached herewith.
