Traders’ body the Confederation of All India Traders (CAIT) on Friday urged Finance Minister Nirmala Sitharaman to defer the implementation of Rule 86B in GST, whereby businesses with over Rs 50 lakh monthly turnover will have to pay at least 1 per cent of their GST liability in cash, terming it a “counter productive” measure that will increase the traders’ compliance burden. The Central Board of Indirect Taxes and Customs has introduced Rule 86B in Goods and Services Tax (GST) which restricts use of input tax credit for discharging GST liability to 99 per cent.
However, this restriction will not apply where the managing director or any partner has paid more than Rs 1 lakh as income tax or the registered person has received a refund amount of over Rs 1 lakh in the preceding financial year on account of unutilised input tax credit.
CAIT, in a letter to Sitharaman, has drawn her attention towards Section 86B, saying that “it is a counter-productive step which will load the traders further with burden of compliance and also much financial obligation”.
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