Businesses whose monthly turnover exceeds Rs 50 lakh are liable to pay 1% of their GST liability in cash. The CBIC has introduced Rule 86B in GST which curbs the use of input tax credit for releasing GST liability to 99%. While calculating a company’s turnover, sales from GST will exclude goods and zero rate supply. This rule isn’t applied to managing directors or partners who paid more than Rs 1 lakh as income tax or the person has received a refund of more than Rs 1 lakh for unutilised input tax credit.
