Rule 38 of CGST Rules -Claim of credit by a banking company or a financial institution

Rule 38 of CGST Rules - Claim of credit by a banking company or a financial institution

A banking companyor a financial institution, including a non-banking financial company, engaged in the supplyof 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 optionpermitted 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-businesspurposes; and

(ii) the credit attributable to the supplies specified in sub-section(5) of section 17,in FORM GSTR-2;

(b) the said company or institution shall avail the credit of tax paid on inputs and inputservices referred to in the second proviso to sub-section (4) of section 17 and notcovered under clause (a); (c) fifty per cent. of the remaining amount of input tax shall be the input tax creditadmissible to the company or the institution and shall be furnished in FORM GSTR-2; (d) the amount referred to in clauses (b) and (c) shall, subject to the provisions of sections41, 42 and 43, be credited to the electronic credit ledger of the said company or theinstitution.

---

CHAPTER V

INPUT TAX CREDIT

Rule 36 :Documentary requirements and conditions for claiming input tax credit Rule 37 : Reversal of input tax credit in the case of non-payment of consideration Rule 38 :Claim of credit by a banking company or a financial institution Rule 39 :Procedure for distribution of input tax credit by Input Service Distributor Rule 40 :Manner of claiming credit in special circumstances Rule 41 :Transfer of credit on sale, merger, amalgamation, lease or transfer of abusiness Rule 42 :Manner of determination of input tax credit in respect of inputs or input servicesand reversal thereof Rule 43 :Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases Rule 44 :Manner of reversal of credit under special circumstances Rule 44A : Manner of reversal of credit of Additional duty of Customs in respect of Golddore bar Rule 45 :Conditions and restrictions in respect of inputs and capital goods sent to the jobworker