Section 17 - Apportionment of credit and blocked credits.

Input tax credit restrictions limit recoverable tax where inputs serve exempt uses, with specified exclusions and a bank option.

Section 17 restricts input tax credit to the portion attributable to business or taxable supplies where inputs are used partly for exempt supplies; prescribes categories treated as exempt supplies; permits banking and financial institutions a monthly option to claim half of eligible credit subject to conditions; enumerates specific blocked credits including most motor vehicles, certain personal and employee-related supplies, works contracts and construction of immovable property (other than plant and machinery), composition-taxed supplies, non-resident inward supplies (except imports), personal consumption and lost or disposed goods; allows Government to prescribe attribution and defines plant and machinery with exclusions.