Rule 38. 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 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[****]
