Section 17 - Apportionment of credit and blocked credits.

Input tax credit apportionment limits recoverable credit and lists blocked credits, with a special option for financial institutions.

Apportionment and restriction of Input Tax Credit limit credit to the portion attributable to business use or to taxable (including zero-rated) supplies; exempt supplies are prescribed and include reverse-charge supplies, securities transactions, sale of land and certain building sales. Banks and financial institutions may either follow general apportionment rules or elect a monthly limited-recovery option for eligible credits, irrevocable for the financial year and subject to an exception for supplies between entities with the same PAN. A specified list of blocked credits disallows credit for items such as specified vehicles, certain services, construction-related inputs for immovable property, composition-taxed supplies, non-resident receipts (except imports), personal consumption, disposals and certain tax payments.