The Central Board of Indirect Taxes and Customs (CBIC) while clearing the misconceptions, in a series of tweets, has said the rule will be applicable to only 0.5% of the total taxpayers base of 1.2 crores. The CBIC has introduced Rule 86B in GST Rules, to be applicable from January 1, 2021, which restricts use of input tax credit for discharging GST liability to 99%. The Board has observed that earlier various objections were raised that Rule 86B in respect of the Mandatory 1% Cash Payment will affect a large number of taxpayers.
Source Taxscan
