Accounts department of WMPL is filing GSTR 3B for the month of September 2024 wherein total Taxable supplies reported are 50 Crore with output GST…

7 Since value of taxable supply of WMPL for the month of September 2024 exceeds 50lakh, rule 86B of the CGST Rules, 2017 is applicable to it. Thus, as per rule 86B, amount available in the electronic credit ledger will be utilized only to the extent of 99% of the output tax liability while discharging such tax liability. Balance 1% of the output tax liability needs to be discharged from electronic cash ledger. In terms of the restriction imposed by rule 86B, WMPL can discharge 99% of its output tax liability, i.e.6.1875 crores (99% of 6.25 crores) from the amount available in electronic credit ledger. However, it has to mandatorily discharge the balance 1% of the output tax liability i.e.6,25,000 (1% of 6.25 crores) through electronic cash ledger only. The nature of documents on the basis of which ITC would have been taken by WMPL are: (i) Invoice or revised invoice issued by the supplier of goods and/or services (ii) Invoice issued by the recipient receiving goods and/or services from unregistered supplier in case of reverse charge, subject to payment of tax (iii) Debit note issued by the supplier (iv) Bill of entry or similar document prescribed under the Customs Act (v) Document issued by input service distributor