Section 17 of CGST Act 2017: Apportionment of Credit and Blocked Credit

What does Section 17 Say?
Section 17 of the CGST ACT 2017 talks about Input Tax Credit Apportionment and Blocking of Ineligible GST Credits. GST was introduced to provide a Seamless Flow of Input Tax Credits throughout the entire Supply chain and to avoid cascading taxes. Input Tax Credit mechanism the main strength of GST Law. It is the ITC that makes the GST essentially as Value Added Tax. The Reference from the GST Law has been described as below: (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 suppliesincluding zero-rated supplies under thisAct or underthe 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. [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, except those specified in paragraph 5 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goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financialyear: