Goods and services on which partial Input Tax credit is available

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

  • 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
  • The val­ue of exempt sup­ply under sub-sec­tion (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
  • A bank­ing com­pa­ny or a finan­cial insti­tu­tion includ­ing a non-bank­ing 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:

Pro­vid­ed fur­ther that the restric­tion of fifty per cent. shall not apply to the tax paid on sup­plies made by one reg­is­tered per­son to anoth­er reg­is­tered per­son hav­ing the same Per­ma­nent Account Num­ber.

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