Summary
Banks, financial institutions and NBFCs that take deposits or give loans may claim a flat 50% of eligible ITC instead of proportionate credit. CBIC says the option covers all of the entity's registrations engaged in such business, while a registration doing unrelated business has neither the option nor the obligation. The circular also sets out how to report the reversal and reclaim in GSTR-3B, with and without IMS.
What it means for you
Finance-sector taxpayers should align their ITC method and GSTR-3B reporting across all GST registrations.
This summary is general information, not legal advice. The outcome of any case depends on its facts; read the source and take advice before acting.
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