co operative society bank gst credit

[lagudu sivakumar]

Dear Expert,

we have an Society "Godavari Mutually aided co operative society ltd", registered under societs registrations act, engaged in supply of services by way of accepting deposits ,my query is

wether the above society can avail 50% of input tax credit

as per sec 17(4) it is said that a banking company or a financial institution including NBFC , engaged in supply of services by way of accepting deposits , extending loans or advances shall have the option an amount equal to 50% .

Thanking You sir

AI Summary

Input tax credit eligibility for cooperative societies acting as banks may depend on classification as a financial institution.
Eligibility of a cooperative society to claim the special input tax credit available to banks or financial institutions depends on whether the society holds regulatory permission and functionally falls within the definition of a financial institution for GST purposes; if so, it may avail the concessional credit mechanism, though alternative input tax credit provisions may also be relevant and professional advice is advised before choosing the applicable option.