Even though it may appear to be Rule 86B will be to severely dampen the benefit of accomplishing enterprise, the intent behind the notification on the said provision shouldn't be obscured. It is to catch maintain of people issuing bogus invoices and they are ‘fly by night time’ operators.

I didn't implement rule 86B in a specific thirty day period. Would there certainly be a penalty, fascination or reversal of ITC in subsequent month?

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Ans. You will find various entities all over India which have interaction in faux invoicing i.e. difficulty of invoices with no true source of goods and / or solutions. These entities have a tendency only to acquire credit rating and move on credit score to other entities without having building any payment of taxes in cash.

Ans. The Restrict of Rs. 1 lakh will be calculated for inverted duty construction and zero rated provides independently. Thus, the Restrict with the exports and supplies to SEZ developer or unit is going to be clubbed to ascertain Rs. One particular lakh but that in the inverted responsibility structure will be separate.

♦ Even so, as soon as it really is established that rule 86B applies, then it needs to be checked that if the registered particular person falls inside the exception specified With this proviso

d) The registered person has discharged his liability in direction of output tax by means of Digital cash ledger in surplus of one% of total output tax liability utilized cumulatively upto the explained month in the current monetary calendar year

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