👉 What is Rule 86B?
If your business has sales above ₹50 lakh in a month, then:
➡️ You can’t pay all GST using ITC (Input Tax Credit)
➡️ You must pay at least 1% GST in cash
👉 Simple example
If your GST payable is ₹1,00,000:
- You can use ITC for → ₹99,000
- You must pay cash → ₹1,000
👉 Why government made this rule?
To stop:
- Fake bills
- Wrong ITC claims
Basically, to control GST fraud
👉 When this rule does NOT apply
You don’t have to follow it if:
- You (owner/director) pay good income tax (₹1 lakh+)
- You get GST refunds (like exporters)
- You already pay some GST in cash regularly
- Government companies
⚠️ What happens if you ignore Rule 86B?
In simple terms — problem hi problem 😅
❌ 1. Notice aa sakta hai
GST department (Central Board of Indirect Taxes and Customs) notice bhej sakta hai
❌ 2. Extra paisa dena padega
- 1% jo cash nahi diya → wo dena padega
- Saath me interest + penalty
❌ 3. Business ruk sakta hai
- Your E-Way Bill can get blocked
- Matlab goods movement ruk jayega
❌ 4. Audit / Investigation
- Department detail checking karega
- Records verify honge
❌ 5. Cash flow problem
- Baad me ek saath payment karna padega
- Financial pressure aa jata hai
✔️ Final simple advice
👉 ITC hai matlab full use mat karo blindly
👉 Thoda GST cash me pay karte raho
👉 Safe side pe raho — tension free business 👍