What are the key benefits of SBI Credit Cards?

SBI Credit Cards offer a wide range of benefits, including rewards, cashback, lounge access, discounts, and insurance coverage.

How can I apply for an SBI Credit Card?

You can apply for an SBI Credit Card online through the Paisabazaar platform, where you can compare card options and check for pre-approved offers.

What factors should I consider when choosing an SBI Credit Card?

Consider your spending habits, lifestyle, and financial goals to select a card that best suits your needs, such as travel, shopping, or rewards.

How can I manage my SBI Credit Card efficiently?

SBI Card offers a user-friendly mobile app and online banking services to help you manage your card, check statements, make payments, and access additional features.

What precautions should I take to avoid accumulating credit card debt?

Responsible credit card usage includes paying bills on time, managing credit limits wisely, and avoiding unnecessary spending to prevent debt accumulation.

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CBIC Rule 86B: Limits on ITC Utilization

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CBIC Rule 86B: Limits on ITC Utilization

Mar 21, 2024

15 Mins

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a new rule, 86B, via notification number 94/2020 dated December 22, 2020. This rule, which became effective on January 1, 2021, places restrictions on the utilization of Input Tax Credit (ITC) in the electronic credit ledger under the Goods and Services Tax (GST) system.

Previously, ITC could be fully utilized for discharging output tax liability. However, Rule 86B limits the use of ITC balance for this purpose. The rule applies to registered individuals who have a taxable value of supply exceeding Rs. 50 lakh in a month (excluding exempt and zero-rated supplies). The limit must be checked every month before filing returns.

Under this rule, registered persons cannot use ITC in excess of 99% of their output tax liability. In other words, more than 99% of the output tax liability cannot be settled using ITC.

There are exceptions to this rule. Individuals who have paid more than Rs. 1 lakh as Income Tax under the Income Tax Act, 1961, and certain authorized individuals (such as partners or directors) are exempt. Additionally, those who have received a refund of over Rs. 1 lakh in the previous financial year due to export or inverted tax structure, or have discharged their output tax liability by electronic cash ledger for an amount exceeding 1% of the total liability up to the current month in the current financial year, are also exempt.

The rule primarily targets large taxpayers and aims to combat fake invoicing and fraudulent use of input tax credit. The government's objective is to prevent the misuse of ITC and curb tax evasion.

It is important to note that 1% is calculated based on the tax liability and turnover in a given month.

While this new rule may inconvenience genuine taxpayers, it serves the purpose of ensuring compliance and reducing fraudulent activities.

Under this rule, registered persons cannot use ITC in excess of 99% of their output tax liability. In other words, more than 99% of the output tax liability cannot be settled using ITC.

The rule primarily targets large taxpayers and aims to combat fake invoicing and fraudulent use of input tax credit. The government's objective is to prevent the misuse of ITC and curb tax evasion.

It is important to note that 1% is calculated based on the tax liability and turnover in a given month.

While this new rule may inconvenience genuine taxpayers, it serves the purpose of ensuring compliance and reducing fraudulent activities.