Where the goods or services or both are used by the registered
person partly for the purpose of any business and partly for other
purposes, the amount of credit shall be restricted to so much of the
input tax as is attributable to the purposes of his business.
(2) Where the goods or services or both are used by the registered
person partly for effecting taxable supplies including zero -rated
supplies under this Act or under the Integrated Goods and Services
Tax Act and partly for effecting exempt supplies under the said Acts,
the amount of credit shall be restricted to so much o f the input tax
as is attributable to the said taxable supplies including zero -rated
supplies.
(3) The value of exempt supply under subsection (2) shall be such as
may be prescribed, and shall include supplies on which the recipient
is liable to pay tax on reverse charge basis, transactions in securities,
sale of land and, subject to clause (b) of paragraph 5 of Schedule II,
sale of building.
*[Explanation. - For the purposes of this sub-section, the expression "value
of exempt supply" shall not include the value of activities or transactions
specified in Schedule Ill, except those specified in paragraph 5 of the said
Schedule.]
*[substituted by 2019 Amd Act s.9(a)]
(4) A banking company or a financial institution including a non -
banking financial company, engaged in supplying services by way of
accepting deposits, extending loans or advances shall have the option
to either comply with the provisions of sub -section (2), or avail of,
every month, an amount equal to fifty per cent. of the eligible input
tax credit on inputs, capital goods and input services in that month
and the rest shall lapse:
Provided that the option once exercised shall not be withdrawn
during the remaining part of the financial year:
Provided further that the restriction of fifty percent shall not apply to
the tax paid on supplies made by one registered person to another
registered person having the same Permanent Account Number.
(5) Notwithstanding anything contained in sub-section (1) of section
16 and subsection (1) of section 18, input tax credit shall not be
available in respect of the following, namely:-
*[(a) motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except
when they are used for making the following taxable supplies, namely: -
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
( aa) vessels and aircraft except when they are used-
(i) for making the following taxable supplies, namely: -
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(a) services of general insurance, servicing, repair and maintenance in so far
as they relate to motor vehicles, vessels or aircraft referred to in clause (a)
or clause (aa):
Provided that the input tax credit in respect of such services shall be
available-
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or
clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged-
( I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor
vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery, leasing, renting or hiring of
motor vehicles, vessels or aircraft referred to in clause (a) or clause
(aa) except when used for the purposes specified therein, life insurance
Provided that the input tax credit in respect of such goods or services or both
shall be available where an inward supply of such goods or services or both
is used by a registered person for making an outward taxable supply of the
same category of goods or services or both or as an element of a taxable
composite or mixed supply
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or
home travel concession:
Provided that the input tax credit in respect of such goods or servicesor both
shall be available, where it is obligatory for an employer to provide the same
to its employees under any law for the time being in force.]
[substituted by 2019 Amd Act s.9(b)]
(c) works contract services when supplied for construction of an
immovable property (other than plant and machinery) except where
it is an input service for further supply of works contract service;
(d) goods or services or both received by a taxable person for
construction of an immovable property (other than plant or
machinery) on his own account including when such goods or
services or both are used in the course or furtherance of business.
Explanation. - For the purposes of clauses (c) and (d), the
expression "construction" includes reconstruction, renovation,
additions or alterations or repairs, to the extent of capitalisation, to
the said immovable property;
(e) goods or services or both on which tax has been paid under
section10;
(f) goods or services or both received by a non -resident taxable
person except on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of
gift or free samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129
and 130.
(6) The Government may prescribe the manner in which the credit
referred to in sub-sections (1) and (2) may be attributed.
Explanation. - For the purposes of this Chapter and Chapter VI, the
expression "plant and machinery" means apparatus, equipment, and
machinery fixed to earth by foundation or structural support that are
used for making outward supply of goods or services or both and
includes such foundation and structural supports but excludes-
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
Availability of credit in special circumstances.-
Section 17 • THE ASSAM GOODS AND SERVICES TAX ACT, 2017
Section 17 (1). 1
assam-goods-and-services-tax-act-2017-sec-17.json
•
Section 17
{
"act_title": "THE ASSAM GOODS AND SERVICES TAX ACT, 2017",
"act_slug": "assam-goods-and-services-tax-act-2017",
"section_label": "Section",
"section": {
"number": "17",
"title": "Section 17 (1). 1",
"chapter": null,
"content": "Where the goods or services or both are used by the registered \nperson partly for the purpose of any business and partly for other \npurposes, the amount of credit shall be restricted to so much of the \ninput tax as is attributable to the purposes of his business. \n(2) Where the goods or services or both are used by the registered \nperson partly for effecting taxable supplies including zero -rated \nsupplies under this Act or under the Integrated Goods and Services \nTax Act and partly for effecting exempt supplies under the said Acts, \nthe amount of credit shall be restricted to so much o f the input tax \nas is attributable to the said taxable supplies including zero -rated \nsupplies. \n(3) The value of exempt supply under subsection (2) shall be such as \nmay be prescribed, and shall include supplies on which the recipient \nis liable to pay tax on reverse charge basis, transactions in securities, \nsale of land and, subject to clause (b) of paragraph 5 of Schedule II, \nsale of building. \n*[Explanation. - For the purposes of this sub-section, the expression \"value \nof exempt supply\" shall not include the value of activities or transactions \nspecified in Schedule Ill, except those specified in paragraph 5 of the said \nSchedule.] \n*[substituted by 2019 Amd Act s.9(a)] \n(4) A banking company or a financial institution including a non -\nbanking financial company, engaged in supplying services by way of \naccepting deposits, extending loans or advances shall have the option \nto either comply with the provisions of sub -section (2), or avail of, \nevery month, an amount equal to fifty per cent. of the eligible input \ntax credit on inputs, capital goods and input services in that month \nand the rest shall lapse: \nProvided that the option once exercised shall not be withdrawn \nduring the remaining part of the financial year: \nProvided further that the restriction of fifty percent shall not apply to \nthe tax paid on supplies made by one registered person to another \nregistered person having the same Permanent Account Number. \n(5) Notwithstanding anything contained in sub-section (1) of section \n16 and subsection (1) of section 18, input tax credit shall not be \navailable in respect of the following, namely:- \n*[(a) motor vehicles for transportation of persons having approved seating \ncapacity of not more than thirteen persons (including the driver), except \nwhen they are used for making the following taxable supplies, namely: - \n(A) further supply of such motor vehicles; or \n(B) transportation of passengers; or \n(C) imparting training on driving such motor vehicles; \n( aa) vessels and aircraft except when they are used- \n(i) for making the following taxable supplies, namely: - \n(A) further supply of such vessels or aircraft; or \n(B) transportation of passengers; or \n(C) imparting training on navigating such vessels; or \n(D) imparting training on flying such aircraft; \n(ii) for transportation of goods; \n(a) services of general insurance, servicing, repair and maintenance in so far \nas they relate to motor vehicles, vessels or aircraft referred to in clause (a) \nor clause (aa): \nProvided that the input tax credit in respect of such services shall be \navailable- \n(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or \nclause (aa) are used for the purposes specified therein; \n(ii) where received by a taxable person engaged- \n( I) in the manufacture of such motor vehicles, vessels or aircraft; or \n(II) in the supply of general insurance services in respect of such motor \nvehicles, vessels or aircraft insured by him; \n(b) the following supply of goods or services or both- \n(i) food and beverages, outdoor catering, beauty treatment, health \nservices, cosmetic and plastic surgery, leasing, renting or hiring of \nmotor vehicles, vessels or aircraft referred to in clause (a) or clause \n(aa) except when used for the purposes specified therein, life insurance \nProvided that the input tax credit in respect of such goods or services or both \nshall be available where an inward supply of such goods or services or both \nis used by a registered person for making an outward taxable supply of the \nsame category of goods or services or both or as an element of a taxable \ncomposite or mixed supply \n(ii) membership of a club, health and fitness centre; and \n(iii) travel benefits extended to employees on vacation such as leave or \nhome travel concession: \nProvided that the input tax credit in respect of such goods or servicesor both \nshall be available, where it is obligatory for an employer to provide the same \nto its employees under any law for the time being in force.] \n[substituted by 2019 Amd Act s.9(b)] \n(c) works contract services when supplied for construction of an \nimmovable property (other than plant and machinery) except where \nit is an input service for further supply of works contract service; \n(d) goods or services or both received by a taxable person for \nconstruction of an immovable property (other than plant or \nmachinery) on his own account including when such goods or \nservices or both are used in the course or furtherance of business. \nExplanation. - For the purposes of clauses (c) and (d), the \nexpression \"construction\" includes reconstruction, renovation, \nadditions or alterations or repairs, to the extent of capitalisation, to \nthe said immovable property; \n(e) goods or services or both on which tax has been paid under \nsection10; \n(f) goods or services or both received by a non -resident taxable \nperson except on goods imported by him; \n(g) goods or services or both used for personal consumption; \n(h) goods lost, stolen, destroyed, written off or disposed of by way of \ngift or free samples; and \n(i) any tax paid in accordance with the provisions of sections 74, 129 \nand 130. \n(6) The Government may prescribe the manner in which the credit \nreferred to in sub-sections (1) and (2) may be attributed. \nExplanation. - For the purposes of this Chapter and Chapter VI, the \nexpression \"plant and machinery\" means apparatus, equipment, and \nmachinery fixed to earth by foundation or structural support that are \nused for making outward supply of goods or services or both and \nincludes such foundation and structural supports but excludes- \n(i) land, building or any other civil structures; \n(ii) telecommunication towers; and \n(iii) pipelines laid outside the factory premises. \nAvailability of credit in special circumstances.-",
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