Attribution of Input Tax Credit: apportionment and mandatory reversal rules define eligible ITC and project-wise adjustments. Rule 42 prescribes attribution of input tax credit where inputs or input services are partly used for taxable, exempt or non-business purposes by identifying T, segregating T1, T2, T3 and T4, computing common credit C2 and final eligible credit C3 after applying the exempt-supplies ratio (E/F) and a fixed five percent non-business allocation; reporting and reversals are to be made in specified returns with final annual or project-level reconciliation by the September return and interest where reversals are required.
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.
Attribution of Input Tax Credit: apportionment and mandatory reversal rules define eligible ITC and project-wise adjustments.
Rule 42 prescribes attribution of input tax credit where inputs or input services are partly used for taxable, exempt or non-business purposes by identifying T, segregating T1, T2, T3 and T4, computing common credit C2 and final eligible credit C3 after applying the exempt-supplies ratio (E/F) and a fixed five percent non-business allocation; reporting and reversals are to be made in specified returns with final annual or project-level reconciliation by the September return and interest where reversals are required.
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