Question– Is the 1% cash payment requirement under Rule 86B calculated after including the tax payable under Reverse Charge Mechanism (RCM)? The 1% minimum cash payment requirement under Rule 86B is calculated with reference to the output tax liability of the registered person. Accordingly, subject to the other conditions prescribed under Rule 86B, the taxpayer may examine the availability of the relevant exception from the restriction under Rule 86B. Question–What happens after the shortfall in the mandatory 1% cash payment under Rule 86B is subsequently paid in cash? The ₹1,00,000 cash payment made during FY 2025-26 cannot automatically be adjusted or treated as the ₹10,000 cash payment required for FY 2024-25.