FinoPulse #009 · MAY 08, 2026
Lead Story: GST Rule 86B
India’s Daily Tax Intelligence ·
finoscape.com
finoscape.com
Imagine a routine GSTR-3B filing day for your finance team. You have a ₹12 crore monthly turnover and ₹38 lakhs sitting unused in the electronic credit ledger. But, the portal rejects the filing due to Rule 86B.
What the Law Actually Says
BARE ACT
Rule 86B: …
Rule 86B: …
What This Means for You
This rule can trip up high-turnover businesses like yours. You need to ensure that at least 1% of your output liability is paid in cash.
For example, if your output liability is ₹10 lakhs, you need to pay at least ₹1,000 in cash.
A Real Example
A Delhi-based consumer goods distributor with a ₹12 crore monthly turnover found this out the hard way.
EXPERT CORNER
Our expert says, ‘This rule is a game-changer for high-turnover businesses. You need to review your cash flow and ensure compliance.’
Our expert says, ‘This rule is a game-changer for high-turnover businesses. You need to review your cash flow and ensure compliance.’
THREE THINGS TO DO
1. Review your cash flow
2. Ensure at least 1% of output liability is paid in cash
3. Consult with your tax advisor
1. Review your cash flow
2. Ensure at least 1% of output liability is paid in cash
3. Consult with your tax advisor
EXPLAINER: Demystifying GST on Real Estate
What it says: GST applies to certain real estate transactions
What it means: You need to factor in GST when buying a property
When it applies: GST applies to under-construction properties
Common mistakes: Not factoring in GST, not claiming input tax credit
What it says: GST applies to certain real estate transactions
What it means: You need to factor in GST when buying a property
When it applies: GST applies to under-construction properties
Common mistakes: Not factoring in GST, not claiming input tax credit
GST Update
New GST rates for certain goods and services effective May 1, 2026
The GST Council has announced new rates for certain goods and services.
New GST rates for certain goods and services effective May 1, 2026
The GST Council has announced new rates for certain goods and services.
GST Council Announces New Rates
The GST Council has announced new rates for certain goods and services, effective May 1, 2026
The new rates will apply to certain goods and services.
The GST Council has announced new rates for certain goods and services, effective May 1, 2026
The new rates will apply to certain goods and services.
Quiz: What is the purpose of GST Rule 86B?
A) To reduce tax liability
B) To increase tax revenue
C) To ensure compliance
D) To simplify tax filing
A) To reduce tax liability
B) To increase tax revenue
C) To ensure compliance
D) To simplify tax filing
F
Finoscape Team
India’s Tax Intelligence Hub
Finoscape Team
India’s Tax Intelligence Hub