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.'
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
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."
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