Input tax credit apportionment limits credits to business-attributable uses and restricts credits for specified blocked supplies.

Input tax credit is restricted to the portion attributable to business or to taxable (including zero-rated) supplies when inputs are used partly for exempt supplies; exempt supplies for apportionment include reverse-charge supplies, securities transactions, sale of land and, subject to Schedule II, sale of building. Banks and financial institutions may elect monthly to claim fifty percent of eligible input tax credit on inputs, capital goods and input services with the remainder lapsing, an option irrevocable for the financial year; the Government may prescribe attribution methods.

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