Input tax credit for banking companies is limited by blocked credits, non-business use, and a fifty per cent admissible balance. A banking company or financial institution, including a non-banking financial company, may opt for a special input tax credit method instead of complying with section 17(2). Under this method, credit is barred for inputs and input services used for non-business purposes and for blocked credits under section 17(5), while credit is allowed for items covered by the second proviso to section 17(4) and not otherwise excluded. Fifty per cent of the remaining input tax is admissible as input tax credit.
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 for banking companies is limited by blocked credits, non-business use, and a fifty per cent admissible balance.
A banking company or financial institution, including a non-banking financial company, may opt for a special input tax credit method instead of complying with section 17(2). Under this method, credit is barred for inputs and input services used for non-business purposes and for blocked credits under section 17(5), while credit is allowed for items covered by the second proviso to section 17(4) and not otherwise excluded. Fifty per cent of the remaining input tax is admissible as input tax credit.
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