Section 17 - Apportionment of credit and blocked credits.

Input tax credit limitations: apportionment required where supplies serve both taxable business use and non-business or exempt use.

Apportionment and limitation of input tax credit apply where goods or services are used partly for business or partly for taxable and exempt supplies, restricting credit to the portion attributable to business or taxable supplies; prescribed categories count as exempt. A list of specific non-creditable supplies and uses is provided, including construction of immovable property (other than plant and machinery), certain motor vehicle uses, specified employee and personal supplies, composition-scheme supplies, supplies to non-residents (except imports), and tax paid under recovery provisions. A banking and financial institution may elect an alternative monthly credit mechanism, and the Government may prescribe attribution rules.