Rule 86B. Restrictions on use of amount available in
electronic credit ledger.-
Notwithstanding anything contained in these rules, the
registered person shall not use the amount available in electronic credit
ledger to discharge his liability towards output tax in excess of ninety-nine
per cent. of such tax liability, in cases where the value of taxable supply
other than exempt supply and zero-rated supply, in a month exceeds fifty lakh
rupees:
Provided that the said restriction shall not apply
where -
(a) the said person or the proprietor or karta or the
managing director or any of its two partners, whole-time Directors, Members of
Managing Committee of Associations or Board of Trustees, as the case may be,
have paid more than one lakh rupees as income tax under the Income-tax Act,
1961(43 of 1961) in each of the last two financial years for which the time
limit to file return of income under subsection (1) of section 139 of the said
Act has expired; or
(b) the registered person has received a refund amount
of more than one lakh rupees in the preceding financial year on account of
unutilised input tax credit under clause (i) of first proviso of sub-section
(3) of section 54; or
(c) the registered person has received a refund amount
of more than one lakh rupees in the preceding financial year on account of
unutilised input tax credit under clause (ii) of first proviso of sub-section
(3) of section 54; or
(d) the registered person has discharged his liability
towards output tax through the electronic cash ledger for an amount which is in
excess of 1% of the total output tax liability, applied cumulatively, upto the
said month in the current financial year; or
(e) the registered person is -
(i) Government Department; or
(ii) a Public Sector Undertaking; or
(iii)a local authority; or
(iv) a statutory body:
Provided further that the Commissioner or an officer
authorised by him in this behalf may remove the said restriction after such
verifications and such safeguards as he may deem fit.]
