GST RULE 86B Restrictions on use of amount available in electronic credit ledger

In order to avoid fake invoicing and curb tax evasion the Central Board of Indirect Taxes and Customs (CBIC) has introduced new rule 86B vide notification number 94/2020 dated 22nd December, 2020. Rule 86B is made effective from 1st January 2021 wherein the registered person shall be required to pay 1% of GST liability in cash if total taxable supply (exclude zero rated and exempt supply) exceeds Rs. 50,00,000 in a month.

Source Taxguru



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