GST & Business Decisions

GST Rule 86B 1% Cash Payment Applicability Calculator

Check the ₹50 lakh monthly taxable-supply threshold, major Rule 86B exception branches and the 1% cash-liability floor on entered output tax.

Primary-source trailMethod shown in fullSource checked 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.

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Your result

Enter the facts and calculate. The result appears here.

What this tool does

Check the ₹50 lakh monthly taxable-supply threshold, major Rule 86B exception branches and the 1% cash-liability floor on entered output tax.

Rule 86B is a restriction on using the electronic credit ledger, not a 1% tax rate on turnover. The tool therefore asks separately for taxable supply and output tax liability.

The ₹50 lakh threshold is applied to taxable supply other than exempt and zero-rated supply for the month. If that gate is not crossed, this checker returns the threshold result rather than calculating a cash floor.

Several exceptions depend on facts outside a single GST return, including specified income-tax payments, specified refunds, cumulative cash discharge and public-sector/statutory status. The toggles should be turned on only after evidence is checked.

A Commissioner can also remove the restriction after verification in the circumstances contemplated by the rule; that discretionary route is not converted into an automatic self-declared exception here.

Inputs explained

Every field below changes the result. They are listed exactly as the form asks for them.

FieldTypeWhat it controls
Monthly taxable supply excluding exempt and zero-rated suppliesNumber
Output tax liability for the monthNumber
Government department / PSU / local authority / statutory body?Choice2 options: No; Yes
Specified income-tax payment exception satisfied?Choice2 options: No / not established; Yes — evidence checked
Specified preceding-FY refund exception satisfied?Choice2 options: No / not established; Yes — evidence checked
Cumulative cash-payment exception satisfied?Choice2 options: No / not established; Yes — evidence checked

Calculation methodology

If monthly taxable supply exceeds ₹50 lakh and no selected exception applies, electronic credit ledger cannot discharge more than 99% of output tax liability; indicative cash floor = 1% × output tax.

The engine validates required values before calculating and rejects impossible combinations instead of converting them to zero silently. Dates, thresholds and category switches that drive the result remain visible to the user.

Applicable rule and legal basis

The logic on this page is built from the instrument(s) below. Where a rule did not clearly cover a scenario, that scenario is excluded rather than estimated.

Reading and interpreting the result

1. Confirm the classification

The most common error in regulated calculations is not arithmetic; it is putting the facts into the wrong legal or product category. Check the transaction, entity, holding, policy or taxpayer classification before relying on the number.

2. Preserve the evidence trail

Keep statements, acknowledgements, invoices, policy schedules, complaint IDs, tax workings or orders that support the inputs. A number without an evidence trail is difficult to defend in a complaint, return, claim or review.

3. Re-check the effective date

Rules can change. This page records a source-check date, not a fabricated professional review date. If the event belongs to an older period, confirm that the rule version used here applies to that period.

Frequently asked questions

Is Rule 86B a 1% tax on turnover?

No. It limits use of electronic credit ledger against output tax liability in covered cases.

Does the ₹50 lakh threshold include exempt and zero-rated supplies?

The active rule text excludes exempt and zero-rated supply from that threshold measure.

Can I select an exception because I expect a refund?

No. Use an exception only when the specific rule condition and evidence are actually satisfied.

Does this calculate the full GST payable?

No. Enter the correct output-tax liability from the GST computation; the tool only checks the Rule 86B cash-use restriction.

Can the Commissioner remove the restriction?

The rule contains a verification-based power; this calculator does not presume that relief has been granted.

Primary sources & verification trail

Source links below are the authority trail used to design the current rule logic. They remain more important than a generic secondary explainer.

Source checked: 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.

Related calculators

These cover adjacent decisions. Each owns a different question, so use the one that matches your actual event.

Related guides and provisions

Assumptions, exclusions and limitations

Disclaimer

This calculator is published for general information and educational purposes only. It is not legal, tax, accounting or investment advice, is not personalised to your circumstances, and is not a substitute for reading the governing instrument or taking professional advice on your facts. Finin2min records a source-check date, which denotes verification of the authority trail and not a professional review or approval of any individual case.

Last reviewed: 15 July 2026

Methodology, assumptions and sources

Scope: Computes interest on delayed GST tax payment under Section 50 of the CGST Act.

Calculation logic

  1. Interest = Tax amount paid late × 18% per annum (or 24% per annum for the specific case of ITC wrongly availed and utilised, per the proviso) × (Number of days delayed ÷ 365).
  2. Interest is computed on the net tax liability payable via the electronic cash ledger (after ITC set-off), consistent with the current interpretation of Section 50(1) as clarified by CBIC circular, from the day after the due date until the date of actual payment.
  3. Where the case involves wrongly availed and utilised ITC, apply the higher 24% rate specifically to that portion, per Section 50(3), while the remaining (non-ITC-related) shortfall continues at 18%.

Inputs and assumptions

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 19 July 2026.

© 2026 Finin2min · Educational decision support · Validate assumptions and applicable law.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.