ITC for Banking Company including Non-Banking financial institutions

Section 17(4) of CGST Act, 2017

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 sub-section (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.

Note:

✓The option once exercised shall not be withdrawn during the remaining

part of the financial year:

✓ The restriction of fifty per cent. shall not apply to the tax paid on supplies made by one registered person to another registered person having the same Permanent Account Number.