Section 17: Apportionment of Credit and Blocked Credits

Rajagopal K | Last updated: 07 July 2025

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This article details the rules for apportioning Input Tax Credit (ITC) in India under GST. It explains how ITC is restricted to business use when goods or services have mixed usage and how it's limited to taxable supplies when used for both taxable and exempt supplies. The article also outlines specific categories of 'blocked credits' where ITC is not allowed, such as for certain motor vehicles, general insurance, and personal consumption, with exceptions provided for specific business uses.

Sub-section (1): Business and Non-Business Use When goods or services are used partly for business and partly for other purposes, ITC shall be restricted to the portion attributable to business use only. Sub-section (2): Taxable vs Exempt Supplies When goods or services are used: Partly for ta

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About the Author

Rajagopal K

Taxation Head

Taxation Head – Textile Industries, CoimbatoreM.Com | Advanced Diploma in GST (IISDT, Indore – 2025) | Fundamentals of GST (Ramanujan College, University of Delhi – 2023) | Life Member - Indian Accounting Association (Coimbatore Branch) I am a seasoned finance and taxation professional with over 25 years of experience ... Read more

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