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,- (@) the said company or institution shall not avail the credit of,-
(i) the tax paid on inputs and input services that are used for nonbusiness 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 subsection (4) of section 17 and not covered under clause (a);
(c) fifty percent. 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[;
3‘d) ['k'k'k'k'k] ! The word letters and figure “in FORM GSTR-2" were omitted by Notification No. GST.1022/C.R41 (1) / Taxation-1 (Second Amendment-2022, Notification No.19/2022), dated 13th October 2022 (w. e.f. 1st’ day of October, 2022 2 For the words, letters and figure, “and shall be furnished in FORM GSTR-2”, the words, letters and figure, “and the balance amount of input tax credit shall be reversed in FORM GSTR-3B” was substituted;, by Notification No.
GST.1022/C.R.41 (1) / Taxation-1 (Second Amendment-2022, Notification No.19/2022), dated 13th October 2022 (w.
ef. 1st’day of October, 2022 3 This clause was omitted by Notification No. GST.1022/C.R.41 (1) / Taxation-1 (Second Amendment-2022, Notification No.19/2022), dated 13% October 2022 (w. e.f. 1’ day of October, 2022). Earlier to omission it read as under :
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