Procedure to 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 supply of services by way of accepting deposits or extending loans or advances that chooses not to comply with the provisions of section 17(2), in accordance with the option permitted under section 17(4) of CGST Act, shall follow the procedure specified below —
(a) the said company or institution shall not avail the credit of tax paid on inputs and input services that are used for non-business purposes and the credit attributable to supplies specified in section 17(5), in form GSTR-2.
(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 section 16(4) and not covered under clause (a).
(c) fifty per cent of the remaining input tax shall be the input tax credit admissible 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 sections 41, 42 and 43, be credited to the electronic credit ledger of the said company or the institution – rule 3 of Input Tax Credit Rules.