What GST returns and rules does GSTBuddies support?

GSTBuddies audits GSTR-1, 2A, 2B, 3B, 9 and 9C. Checks include Rule 37 (180-day ITC reversal), Rule 42/43 common-credit reversal advisories, Rule 86B, Section 16(4) ITC time-bar, Section 50 interest, Section 47 late fees, reverse-charge (RCM) checks, the annual Table 8 ITC reconciliation and the three-way GSTR-1 vs 3B vs 9 reconciliation. Every figure is cited to the CGST Act and Rules. Section 17(5) blocked credits depend on what each expense was, which a GST return does not carry, so that review stays with your books.

What file formats can I upload?

PDF, Excel, JSON and ZIP. Upload GSTR PDFs from the GST Portal, Excel ledgers from Tally, Busy or any party ledger (.xlsx/.xls), JSON exports for GSTR-2A/2B/3B/9/9C, or the portal's ZIP downloads — GSTBuddies extracts and classifies them automatically.

Is GSTBuddies free to try?

Yes. Sign up to get free credits every month, no credit card required, and run GST compliance checks to see the results before you buy.

Yes. GSTBuddies uses AES-256 encryption on AWS infrastructure and never shares your data. Uploaded files are processed and deleted after 7 days.

Rule 86B, CGST Rules · Notification 94/2020-CT

Rule 86B: the 1% cash payment rule, explained

High-turnover taxpayers cannot pay their entire GST liability using input tax credit — at least 1% must be paid in cash. Here's who it applies to and the exceptions.

What Rule 86B restricts

Effective 1 January 2021, where the value of taxable supplies (other than exempt and zero-rated) in a month exceeds ₹50 lakh, the registered person may not use the electronic credit ledger to discharge more than 99% of the output tax liability for that month. In other words, at least 1% of the output tax must be paid in cash.

Threshold is per month, on taxable turnover (excluding exempt and zero-rated supplies) — not annual turnover. The 1% applies to the output tax liability, not turnover.

Who is exempt from Rule 86B

The person, proprietor, karta, MD, or any partner/whole-time director paid income tax exceeding ₹1 lakh in each of the last two financial years.
The registered person received a refund exceeding ₹1 lakh on account of unutilised ITC (zero-rated exports without payment of tax, or inverted duty structure).
The registered person has discharged at least 1% of output liability in cash, cumulatively, up to the said month in the financial year.
Government department, PSU, local authority or statutory body.

How GSTBuddies checks Rule 86B

From your GSTR-3B, GSTBuddies tests whether the 1% cash-payment condition was met where the ₹50 lakh threshold is crossed, and flags exposure with the exemption evidence to check. See the full compliance suite or related guides on Section 16(4).

FAQ

When does Rule 86B apply?

When monthly taxable supplies (excluding exempt and zero-rated) exceed ₹50 lakh, unless an exemption applies.

How much GST must be paid in cash under Rule 86B?

At least 1% of the month's output tax liability must be paid in cash; ITC can cover at most 99%.