Input tax credit apportionment: restrictions where inputs fund exempt or non-business use and specified blocked credits apply.

Input tax credit is restricted to the portion attributable to business or to taxable supplies where inputs are also used for exempt supplies; exempt supply value includes reverse charge supplies, securities transactions, sale of land and certain sales of buildings. Banks and financial institutions have an option between general apportionment and a monthly fixed-percentage claim on eligible credits, with the option irrevocable for the financial year and intra-PAN supplies excluded. A detailed list of blocked credits disallows credit for specified motor vehicles, certain hospitality and membership supplies, construction-related inputs for immovable property, composition-scheme supplies, non-resident receipts (except imports), personal consumption, losses or gifts, and tax under enforcement provisions; government may prescribe attribution methods.

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