Input tax credit apportionment limits recoverable credit and prescribes blocked credits and a bank option for claiming credit.

Input tax credit is restricted to the portion attributable to business use and to taxable supplies when inputs serve both taxable and exempt activities; exempt supplies are prescribed and include reverse-charge supplies, securities transactions, and sale of land or certain buildings. Banks and financial institutions may opt for the taxable-vs-exempt apportionment or a monthly option permitting a fixed portion of eligible credit with the remainder lapsing, subject to an irrevocable financial-year option and an intra-group exception. The Act enumerates specific blocked credits and empowers the Government to prescribe attribution methods, while defining "plant and machinery."

---

---

---