17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies Rule 43 including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,- (1) the amount of input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or Manner used or intended to be used exclusively for effecting exempt of supplies shall be indicated in FORM GSTR-2 and shall not be credited to his electronic credit ledger; of the amount of input tax in respect of capital goods used or input tax intended to be used exclusively for effecting supplies other credit in than exempted supplies but including zero-rated supplies respect of shall be indicated in FORM GSTR-2 and shall be credited to capital the electronic credit ledger; goods and the amount of input tax in respect of capital goods not reversal covered under clauses (a) and (b), denoted as ‘A’, shall be thereof in credited to the electronic credit ledger and the useful life of certain such goods shall be taken as five years from the date of the cases invoice for such goods: Subject to Provided that where any capital goods earlier covered the under clause (a) is subsequently covered under this clause, provisions the value of ‘A’ shall be arrived at by reducing the input tax of at the rate of five percentage points for every quarter or (3) part thereof and the amount ‘A’ shall be credited to the of section electronic credit ledger; 16, the Explanation: An item of capital goods declared under clause input tax on its receipt shall not attract the provisions of credit in (4) of section 18 if it is subsequently covered under respect of this clause. capital goods, which attract the provisions of sections (1) and (2) of section
Rule 43 (1) Manner of of input tax credit in respect of capital goods and reversal thereof in certain cases Subject to the provisions of (3) of section 16, the input tax credit in respect of capital goods, which attract the provisions of (1) and (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,- the amount of input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or used or intended to be used exclusively for effecting exempt supplies shall be indicated in FORM GSTR-2 and shall not be credited to his electronic credit ledger; the amount of input tax in respect of capital goods used or intended to be used exclusively for effecting supplies other than exempted supplies but including zero-rated supplies shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger; the amount of input tax in respect of capital goods not covered under clauses (a) and (b), denoted as ‘A’, shall be credited to the electronic credit ledger and the useful life of such goods shall be taken as five years from the date of the invoice for such goods: Provided that where any capital goods earlier covered under clause (a) is subsequently covered under this clause, the value of ‘A’ shall be arrived at by reducing the input tax at the rate of five percentage points for every quarter or part thereof and the amount ‘A’ shall be credited to the electronic credit ledger; Explanation: An item of capital goods declared under clause on its receipt shall not attract the provisions of (4) of section 18 if it is subsequently covered under this clause. sections