As per the new Rule 86B 1) It is applicable for GST to be paid for the supply made from January’20 onwards. 2) If the Income Tax paid is more than Rs.1 Lakh for financial year 19 – 20 and 18 – 19, then from January’20, the limit of 99% is not applicable. However, if any one of the year the income tax paid is less than Rs.1 Lakh, the restriction will be applicable. Is my understanding correct?
Kaustubh Karandikar Asked question December 24, 2020
The language used is ‘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’. Accordingly your understanding is correct.
For further details on Rule 86B CLICK HERE
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Frah Saeed Changed status to publish January 13, 2021