Special provisions of Banking and Financial Institution :
a. A banking company or a financial institution shall have following two options:-
i. Reverse the input tax credit attributable to exempt supplies as per Rule 42 of CGST Rules, 2017 or
ii. Avail 50% of eligible input tax credit that month and rest shall lapse.
b. No credit of tax paid on inputs and input services that are used for non business purpose
c. No credit of inadmissible inputs and input services
d. The option once exercised shall not be withdrawn during the remaining part of the financial year.
e. Restriction of 50% shall not apply to the tax paid on supplies made by one registered person to another registered person having the same Permanent Account Number.
f. Option once exercised shall not be withdrawn during the remaining part of financial year.