# The Central Goods and Services Tax Rules, 2017, Rule 38: Claim of credit by a banking company or a financial institution

- Act: The Central Goods and Services Tax Rules, 2017 (Act G.S.R. 610(E) of 2017)
- In force from: 2017-06-22
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/cgst-rules-2017/rule/38/

## Text

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,- (a) the said company or institution shall not avail the credit of,- ( i ) the tax paid on inputs and input services that are used for non-business 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 sub-section (4) of section 17 and not covered under clause (a ); (c) fifty per cent. 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 ] ; (d) 3 [****]   Amendment notes 1. Omitted (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022. 2. Substituted   (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022. 3.   Omitted (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022.

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