{"id":141,"date":"2018-08-21T09:44:23","date_gmt":"2018-08-21T09:44:23","guid":{"rendered":"http:\/\/khannaandassociates.com\/blog\/?p=141"},"modified":"2018-09-03T07:59:54","modified_gmt":"2018-09-03T07:59:54","slug":"section-17-apportionment-of-credit-and-blocked-credits-of-cgst-act-2017","status":"publish","type":"post","link":"https:\/\/khannaandassociates.com\/blog\/section-17-apportionment-of-credit-and-blocked-credits-of-cgst-act-2017\/","title":{"rendered":"Section 17 – Apportionment of credit and blocked credits of CGST ACT, 2017"},"content":{"rendered":"

Section 17 – Apportionment of credit and blocked credits of CGST ACT, 2017<\/strong><\/p>\n

    \n
  1. (1) Where the goods or services or both are used by the registered person partly
    \nfor the purpose of any business and partly for other purposes, the amount of credit shall be
    \nrestricted to so much of the input tax as is attributable to the purposes of his business.
    \n(2) Where the goods or services or both are used by the registered person partly for
    \neffecting taxable supplies including zero-rated supplies under this Act or under the Integrated
    \nGoods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the
    \namount of credit shall be restricted to so much of the input tax as is attributable to the said
    \ntaxable supplies including zero-rated supplies.
    \n(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed,
    \nand shall include supplies on which the recipient is liable to pay tax on reverse charge basis,
    \ntransactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule
    \nII, sale of building.
    \n(4) A banking company or a financial institution including a non-banking financial
    \ncompany, engaged in supplying services by way of accepting deposits, extending loans or
    \nadvances shall have the option to either comply with the provisions of sub-section (2), or
    \navail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on
    \ninputs, capital goods and input services in that month and the rest shall lapse:
    \nProvided that the option once exercised shall not be withdrawn during the remaining
    \npart of the financial year:
    \nProvided further that the restriction of fifty per cent. shall not apply to the tax paid on
    \nsupplies made by one registered person to another registered person having the same
    \nPermanent Account Number.
    \n(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection
    \n(1) of section 18, input tax credit shall not be available in respect of the following,
    \nnamely:\u2014
    \n(a) motor vehicles and other conveyances except when they are used\u2013\u2013
    \n(i) for making the following taxable supplies, namely:\u2014
    \n(A) further supply of such vehicles or conveyances ; or
    \n(B) transportation of passengers; or
    \n(C) imparting training on driving, flying, navigating such vehicles
    \nor conveyances;
    \n(ii) for transportation of goods;<\/li>\n<\/ol>\n

    (b) the following supply of goods or services or both\u2014
    \n(i) food and beverages, outdoor catering, beauty treatment, health services,
    \ncosmetic and plastic surgery except where an inward supply of goods or services
    \nor both of a particular category is used by a registered person for making an
    \noutward taxable supply of the same category of goods or services or both or as
    \nan element of a taxable composite or mixed supply;
    \n(ii) membership of a club, health and fitness centre;
    \n(iii) rent-a-cab, life insurance and health insurance except where\u2013\u2013
    \n(A) the Government notifies the services which are obligatory for an
    \nemployer to provide to its employees under any law for the time being in
    \nforce; or
    \n(B) such inward supply of goods or services or both of a particular
    \ncategory is used by a registered person for making an outward taxable
    \nsupply of the same category of goods or services or both or as part of a
    \ntaxable composite or mixed supply; and
    \n(iv) travel benefits extended to employees on vacation such as leave or
    \nhome travel concession;
    \n(c) works contract services when supplied for construction of an immovable
    \nproperty (other than plant and machinery) except where it is an input service for further
    \nsupply of works contract service;
    \n(d) goods or services or both received by a taxable person for construction of an
    \nimmovable property (other than plant or machinery) on his own account including
    \nwhen such goods or services or both are used in the course or furtherance of business.
    \nExplanation.\u2013\u2013For the purposes of clauses (c) and (d), the expression
    \n\u201cconstruction\u201d includes re-construction, renovation, additions or alterations or repairs,
    \nto the extent of capitalisation, to the said immovable property;
    \n(e) goods or services or both on which tax has been paid under section 10;
    \n(f) goods or services or both received by a non-resident taxable person except
    \non goods imported by him;
    \n(g) goods or services or both used for personal consumption;
    \n(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
    \nsamples; and
    \n(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
    \n(6) The Government may prescribe the manner in which the credit referred to in
    \nsub-sections (1) and (2) may be attributed.
    \nExplanation.\u2013\u2013For the purposes of this Chapter and Chapter VI, the expression \u201cplant
    \nand machinery\u201d means apparatus, equipment, and machinery fixed to earth by foundation or
    \nstructural support that are used for making outward supply of goods or services or both and
    \nincludes such foundation and structural supports but excludes\u2014
    \n(i) land, building or any other civil structures;
    \n(ii) telecommunication towers; and
    \n(iii) pipelines laid outside the factory premises<\/p>\n","protected":false},"excerpt":{"rendered":"

    Section 17 – Apportionment of credit and blocked credits of CGST ACT, 2017 (1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is … Continue reading “Section 17 – Apportionment of credit and blocked credits of CGST ACT, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/141"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=141"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/141\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/141\/revisions\/142"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}