(1) The input tax credit in respect of inputs or input services, which attract the provisions of sub-section (1) or sub-section (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed ‘to the purposes of business or for effecting taxable supplies in the following manner, namely,-
(a) the total input tax involved on inputs and input services in a tax period, be denoted as ‘T’;
(b) the amount of input tax, out of ‘T’, attributable to inputs and input services intended to be used exclusively for the purposes other than business, be denoted as ‘Tr’
(c) the amount of input tax, out of ‘T’, attributable to inputs and input services intended to be used exclusively for effecting exempt supplies, be denoted as “T2’;
(d) the amount ofinput tax, out of ‘T’, in respect of inputs and input services on whichcreditis not available under sub-section (5) of section 17, be denoted as ‘Ts’;
(e) the amount ofinput tax credit credited to the electronic credit ledger of registered person, be denoted as ‘C,’ andcalculated as- C,= T- (1,+T2+T3);
(f) the amountof input tax credit attributable to inputs and input services intended to be used exclusively for effecting supplies other than exempted but including zero rated supplies, be denoted as ‘T4’;
634 (12) Hee Usa, feria 30 YA 2017
(g) ‘Ti’, ‘T2”, ‘T3’ and ‘T,’ shall be determined and declared by the registered person at the invoice level in FORM GSTR-2;
(h) input tax credit left after attribution of input tax credit under clause (g) shall be called commoncredit, be denoted as ‘C2’ and calculated as- C,= C)- T45
(i) the amount of inputtax credit attributable towards exempt supplies, be denoted as ‘D,’ and calculated as- D,= (E+F) x C, where, ‘E’ is the aggregate value ofexempt supplies during the tax period, and ‘F’ is the total turnover in the State ofthe registered person during the tax period:
Provided that where the registered person doesnot have any turnover during the said tax period or the aforesaid information is not available, the value of ‘E/F’ shall be calculated by taking values of ‘E’ and ‘F’ ofthe last tax period for which the details of such turnoverare available, previous to the month during which the said value of ‘E/P’is to be calculated;
Explanation: For the purposesofthis clause,it is hereby clarified that the aggregate value of exempt supplies and the total turnover shall exclude the amount of any duty or tax levied under entry 84 ofList I of the Seventh Schedule to the Constitution and - entry 51 and 54 ofList II of the said Schedule;
(j) the amountofcredit attributable to non-business purposes if common inputs and input services are used partly for business and partly for non-businéss purposes, be denoted as ‘D,’, and shall be equalto five per cent. of C2; and
(k) the remainder of the commoncredit shall be the eligible input tax credit attributed to the purposes of business and for effecting supplies other than exempted supplies butincluding zerorated supplies and shall be denoted as ‘C3’, where,- C3=Co-(@itD2)35 (I) the amount ‘C3’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax;
(m) the amount equal to aggregate of ‘D,’ and “D2” shall be added to the output tax liability of the registered person:
Provided that where the amountof input tax relating to inputs or input services used partly for the purposes other than business and partly for effecting exempt supplies has been identified and segregated at the invoice level by the registered person, the same shall be included in ‘T;’ and ‘T,’ respectively, and the remaining amount of credit on such inputsor input servicesshall be includedin ‘T,’.
(2) The input tax credit determined under sub-rule (1) shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September Fee Usa, feat 30 FA 2017 following the endofthe financial year to which such credit relates, in the manner specified in the said sub-rule and-
(a) where the aggregate of the amountscalculated finally in respect of ‘Dy’ and “D2’ exceeds the aggregate of the amounts determined under sub-rule (1) in respect of ‘D,’ and ‘Dy’, such excess shall be added to the outputtax liability of the registered personin the month notlater than the month of September following the end ofthe financial year to which such credit relates and the said person shall be liable to pay interest on the said excess amountat the rate specified in sub-section (1) of section 50 for the period starting from thefirst day of April of the succeeding financial yeartill the date ofpayment; or
(b) where the aggregate of the amounts determined under sub-rule (1) in respect of ‘D,’ and ‘D,’ exceeds the aggregate ofthe amountscalculated finally in respect of “Dy’ and “D2’, such ‘excess amountshall be claimed as credit by the registered person in his return for a month not later than the month of September following the end ofthe financial year to which such credit relates.