Claim of credit by a banking company or a financial institution
Rule 38 of the Central Goods and Services Tax Rules, 2017 deals with claim of credit by a banking company or a financial institution. 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 permi The Act came into force on 22 Jun 2017.
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.
Rule 38, The Central Goods and Services Tax Rules, 2017 (Act G.S.R. 610(E) of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Questions about Rule 38
What does Rule 38 of the Central Goods and Services Tax Rules deal with?
Rule 38 of the Central Goods and Services Tax Rules is headed "Claim of credit by a banking company or a financial institution". 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 permi
How do I find court cases under Rule 38 of the Central Goods and Services Tax Rules?
In judgments and charge sheets this rule is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Rules 2017 38, rule 38 CGST Rules 2017, rule 38 of the Central Goods and Services Tax Rules. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Rule 38 of the Central Goods and Services Tax Rules, and has it changed?
Its own text turns on rule 17 (Assignment of Unique Identity Number to certain special entities), so none of them can safely be read on its own. 5 other provisions in this corpus refer back to it.
When did Rule 38 of the Central Goods and Services Tax Rules come into force?
Rule 38 of the Central Goods and Services Tax Rules, cited as CGST Rules 2017 38, came into force on 22 Jun 2017, having been enacted on 19 Jun 2017. It is in force as at the date shown on this page.
Other rules of this Act
- 89. Application for refund of tax, interest, penalty, fees or any other amount3731 words
- 43. Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases3015 words
- 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill2970 words
- 42. Manner of determination of input tax credit in respect of inputs or input services and reversal thereof2706 words
- 164. Procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section2150 words
- 8. Application for registration2144 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Parsed from the consolidated PDF published by CBIC at taxinformation.cbic.gov.in. The provision list against which this parse was checked comes from the same portal, so a rule the document omits is still recorded. This page is not a substitute for legal advice.