Claim of credit by a banking company or a financial institution

Rule 38 of CGST Rules 2017

38. Claim of cred­it by a bank­ing com­pa­ny or a financial — 

A bank­ing com­pa­ny or a finan­cial insti­tu­tion, includ­ing a non-bank­ing finan­cial com­pa­ny, engaged in the sup­ply of ser­vices by way of accept­ing deposits or extend­ing loans or advances that choos­es not to com­ply with the pro­vi­sions of sub-sec­tion (2) of sec­tion 17, in accor­dance with the option per­mit­ted under sub-sec­tion (4) of that sec­tion, shall fol­low the fol­low­ing pro­ce­dure, namely,-

• the said com­pa­ny or insti­tu­tion shall not avail the cred­it of,- 
  • the tax paid on inputs and input ser­vices that are used for non-busi­ness pur­pos­es; and
  • the cred­it attrib­ut­able to the sup­plies spec­i­fied in sub-sec­tion (5) of sec­tion 17, in FORM GSTR‑2;

• the said com­pa­ny or insti­tu­tion shall avail the cred­it of tax paid on inputs and input ser­vices referred to in the sec­ond pro­vi­so to sub-sec­tion (4) of sec­tion 17 and not cov­ered under clause (a);
• fifty per cent. of the remain­ing amount of input tax shall be the input tax cred­it admis­si­ble to the com­pa­ny or the insti­tu­tion and shall be fur­nished in FORM GSTR‑2;

the amount referred to in claus­es (b) and © shall, sub­ject to the pro­vi­sions of sec­tions 41, 42 and 43, be cred­it­ed to the elec­tron­ic cred­it ledger of the said com­pa­ny or the institution.