Section 17 - Apportionment of credit and blocked credits.

Input Tax Credit apportionment limits recoverable credit to business-related and taxable supplies, with specified blocked credits and exceptions.

Section 17 restricts input tax credit to the portion attributable to business use or to taxable supplies when inputs are also used for exempt supplies; the value of exempt supplies is to be prescribed. Banking and financial institutions may elect an alternative monthly retention mechanism for eligible credit, subject to an irrevocable annual option and intra-PAN exceptions. The section lists specific blocked credits-motor vehicles (with limited exceptions), certain services (food, catering, personal services, memberships, insurance subject to exceptions), works contract and construction inputs, supplies under composition, most non-resident receipts, personal consumption, lost or disposed goods, and specified recovery taxes-and defines 'plant and machinery' for these purposes.