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♦ Post-Modification : utilization of e-credit ledger is limited to highest of ninety nine% of output tax liability
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Restriction imposed: The applicable registered persons can not use ITC in extra of ninety nine% of output tax liability. In basic terms, much more than ninety nine% of the output tax legal responsibility can not be discharged by utilizing enter tax credit rating.
So, it means that minimum one% in the output tax liability shall be discharged in cash using e-cash ledger
♦ This leisure is connected with RECEIPT of refund of ITC on account of zero-rated provides effected with no payment of IGST i.e. effected beneath bond or LuT.
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♦ This rest states that if the individual has paid out more than one% working with e-cash ledger for discharging OUTPUT TAX upto the claimed month in present-day monetary calendar year then this restriction is not going to use i.
Even now, Gluck explained a forty four-minute “movie stock” of FBI brokers rifling in the box of the eighty-calendar year-old client “puts the lie” to the government’s promises on the Justice of the peace.
Many of the unscrupulous taxpayers and a handful of genuine taxpayers would be covered within the ambit of the rule. Any genuine taxpayer having included by this provision and struggling with a cash crunch when generating payment of GST in cash need to make an application towards the jurisdictional Commissioner for removal with the restriction of Rule 86B on him.
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