Chapter - V of CGST Rules, 2017
INPUT TAX CREDIT
RULE 38. Claim of credit by a banking company or a financial institution (corresponding section 17)
A banking company or a financial institution, including a non-banking financial
company, engaged in the supply of services by way of accepting deposits or
extending loans or advances that chooses not to comply with the provisions of
sub-section (2) of section 17, in accordance with the option permitted under
sub-section (4) of that section, shall follow the following procedure, namely,-
(a) the said company or institution shall not avail the credit of,-
(i) the tax paid on inputs and input services that are used for
non-business purposes; and
(ii) the credit attributable to the supplies specified in sub-section (5)
of section 17, in
FORM GSTR-2;
(b) the said company or institution shall avail the credit of tax paid on inputs
and input services referred to in the second proviso to sub-section (4) of
section 17 and not covered under clause (a)
(c) fifty per cent. of the remaining amount of input tax shall be the input tax
credit admissible to the company or the institution and shall be furnished in
FORM GSTR-2;
(d) the amount referred to in clauses (b) and (c) shall, subject to the
provisions of sections 41,
section 42 and
section 43, be credited to the electronic credit
ledger of the said company or the institution.