Section 17 - Apportionment of credit and blocked credits

Input tax credit apportionment: credit confined to business and taxable-use portions, with specified blocked credits applicable.

Input tax credit is restricted to the portion attributable to business use or to taxable supplies when inputs serve both taxable and exempt purposes; exempt supplies include transactions subject to reverse charge, securities, and certain land and building transfers. A detailed list of blocked credits disallows credit for specified vehicles, hospitality and personal services, works contracts and construction for own account, composition-scheme supplies, non-resident procurements (except imports), personal consumption, lost or gifted goods, and tax paid under recovery or penalty provisions. Banking and financial institutions may elect a monthly fifty percent credit option subject to conditions, and the Government may prescribe attribution methods.