Important Keyword: section 17, FORM GSTR-3B.
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GST Rule 38. Claim of credit by a banking company or a financial institution.-
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 1[****] ;
(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 2[and the balance amount of input tax credit shall be reversed in FORM GSTR-3B];
(d) 3[****]
1. Omitted (w.e.f. 01.10.2022) vide Notification No. 19/2022– CT dated 28.09.2022.
2. Substituted (w.e.f. 01.10.2022) vide Notification No. 19/2022 – CT dated 28.09.2022.
3. Omitted (w.e.f. 01.10.2022) vide Notification No. 19/2022 – CT dated 28.09.2022.
Official Income Tax Return filing website: https://incometaxindia.gov.in/
