Section 17 - Apportionment of credit and blocked credits

Finin2min Summary

In practical work, use this provision by first fixing the taxable event or procedural step, then connecting the facts to Chapter V and the linked Rules, forms, notifications, circulars and State/UT GST law.

Bare Act / Law / Rules / Notifications

* Section 17. Apportionment of credit and blocked credits.- (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 attributable to the purposes of his business. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed , and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II , sale of building. 1 [ Explanation .- For the purposes of this sub-section, the expression "value of exempt supply" shall not include the value of activities or transactions specified in Schedule III , 4 [except,- (i) the value of activities or transactions specified in paragraph 5 of the said Schedule; and (ii) the value of such activities or transactions as may be prescribed in respect of clause (a) of paragraph 8 of the said Schedule.];] (4) A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of subsection (2), or avail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option ...

Workflow / Flow Chart

1. Read the official statutory text of Section 17 with Chapter V and note every proviso or explanation.

Q&A

What does Section 17 cover?

Section 17 covers apportionment of credit and blocked credits within Chapter V of the CGST Act.

Can this page replace the official Act?

No. Use this page as a practical guide, then verify Section 17 in India Code, CBIC and any applicable Gazette notification.

What should be retained for Section 17?

Keep the official source, fact matrix, invoices or returns, portal acknowledgements, calculations, correspondence, notices/orders and reviewer conclusion.

Primary Official Sources

• India Code consolidated CGST Act PDFofficial consolidated Act PDF used for statutory cross-check
• CBIC Tax Information Act explorerofficial CBIC section explorer route
• GST Council Central GST resourcesofficial GST Council route for central GST law resources
• CBIC official section content payloadofficial CBIC section HTML payload used for the statutory extract

Related Inter / Intra Links

Section 17 should be read inside the wider GST law hub with CGST Rules, GST forms, circulars, notifications, case-law and practical workflow pages.

Disclaimer

Finin2min provides this Section 17 page for education and professional research. Official India Code, CBIC, Gazette and court sources control the legal position for Apportionment of credit and blocked credits.