Clampdown on fake bills: Rs 50 lakh a month biz to suffer 1% GST in cash

Rule 86B under Central GST Act limits use of input tax credit for discharging liability, changes GST registration rules as well

The Centre has inserted a rule to make it difficult to fraudulently claim input tax credit under the goods and services tax (GST) system. Now, businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least one per cent of their GST liability in cash.
 
Also, for missing invoices, businesses can now claim input tax credit on up to 5 per cent of the amount, against 10 per cent allowed earlier. Experts said the moves have to pass the judicial scurtiny.
 
The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule