6.15 APPORTIONMENT OF CREDIT & BLOCKED CREDITS [SECTION 17] STATUTORY PROVISIONS Section 17 Sub-section Clause Apportionment of credit and blocked credits by the registered person partly for the purpose of any business and (1) partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. Where the goods or services or both are used by the registered (2) person partly for effecting taxable supplies including zero-rated Where supplies under this Act or under the Integrated Goods and Services the Tax Act and partly for effecting exempt supplies under the said goods or Acts, the amount of credit shall be restricted to so much of the services input tax as is attributable to the said taxable supplies including or both zero-rated supplies. are used prescribed, and shall include supplies on which the recipient is (3) liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. A banking company or a financial institution including a (4) banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the The option to either comply with the provisions of sub-section (2), or value of avail of, every month, an amount equal to fifty per cent. of the exempt eligible input tax credit on inputs, capital goods and input services supply in that month and the rest shall lapse: under Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: (2) shall be such as may be
banking 6.15 APPORTIONMENT OF CREDIT & BLOCKED CREDITS [SECTION 17] STATUTORY PROVISIONS Section 17 Sub-section Clause Apportionment of credit and blocked credits (1) (2) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) (4) The value of exempt supply under (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. A banking company or a financial institution including a financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub-section (2), or avail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: