Understanding Rule 86B: GST Input Tax Credit Limitations

The Central Board of Indirect Taxes and Customs (CBIC) introduced Rule 86B via notification number 94/2020 on December 22, 2020. Coming into effect from January 1, 2021, this rule sets limitations on the use of Input Tax Credit (ITC) available in the electronic credit ledger under the Goods and Services Tax (GST) framework.