Central Board of Indirect Taxes and Customs has issued Notification No. 94/2020 – Central Tax dated December 22, 2020, regarding amendments in CGST Rules,2017.
Restrictions on use of amount available in electronic credit ledger
- Where the value of taxable
supply other than exempt supply and zero-rated supply, in a month exceeds
fifty lakh rupees, 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.
Such restriction is not
applicable in following cases:
(i) Where the taxpayer
has paid Income Tax exceeding Rs. 1 lakh in two preceding financial year.
(ii) Where
taxpayer has received refund exceeding Rs. 1 lakhs on account of inverted duty
structure or zero-rated supplies without payment of tax in the preceding
financial year.
(iii) Where taxpayer
has used electronic cash ledger to pay of liability on outward supplies which
cumulatively makes 1% of the total liability up to the said month in the
current financial year.
(iv) Where a person is
a Government Department, Public Sector Undertaking (PSU), local authority or a
statutory body.
This rule
would come into force from 1st January 2021.
SOURCE : CBIC NOTIFICATIONs
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