Section 17

(1) 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 and partly for effecting exempt supplies, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies. (3) The value of exempt supply referred to in sub-section (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. (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. (5) Notwithstanding anything contained in sub-section (1) of section 16, 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 specified taxable supplies; (b) vessels and aircraft, except in specified cases; (c) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clauses (a) and (b); (d) goods or services or both used for food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, life insurance and health insurance, except where the category of inward and outward supply is same or as an element of a taxable composite or mixed supply; (e) membership of a club, health and fitness centre; (f) rent-a-cab, life insurance and health insurance except where the Government notifies the services which are obligatory for an employer to provide to its employees; (g) travel benefits extended to employees on vacation such as leave or home travel concession; (h) 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; (i) 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; (j) goods or services or both on which tax has been paid under section 10; (k) goods or services or both received by a non-resident taxable person except on goods imported by him; (l) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (m) any tax paid in accordance with the provisions of sections 74, 129 and 130.