Sales of goods of amount Rs97 lakhs to a party

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This discussion clarifies the GST payment rules for an intra-state supply of goods totalling ₹97 lakhs in August 2026, with an 18% GST rate. According to Rule 86B, a minimum of 1% of the tax liability, amounting to ₹17,460, must be paid in cash. The remaining ₹17,28,540 can be offset using Input Tax Credit (ITC), provided no exemptions apply. The rule is generally applicable for taxable sales exceeding ₹50 lakhs.

ARUN GUPTA

ARUN GUPTA (Querist)
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11 September 2026 I have a taxable turnover of Rs. 97,00,000/- for the month of August 2026, which is an intra-state supply taxable at 18% GST. Under the current GST rules including Section 49, Rule 86B, and Rule 87, how much tax am I required to pay in cash and how much can be adjusted against Input Tax Credit (ITC)? Kindly clarify the applicability of the 1% minimum cash payment rule in my case.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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11 September 2026 For a taxable intra-state supply of ₹97 Lakhs with a total GST liability of ₹17,46,000, Rule 86B mandates that a minimum of ₹17,460 (1%) must be paid in cash through the Electronic Cash Ledger, while the remaining ₹17,28,540 (99%) can be adjusted against available Input Tax Credit, provided none of the statutory exemption criteria apply.

ARUN GUPTA

ARUN GUPTA (Querist)
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12 September 2026 This is applicable if the taxable sale is above 50 lakhs rupees.If taxable sale is below 50 lakhs does this rule applies?

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