Page 163 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : UTTAR BIHAR GRAMIN BANK 249
(3) The value of exempt supply under 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 build-
ing.
Explanation :- For the purposes of this sub-section, the expression
“value of exempt supply” shall not include the value of activities or trans-
actions specified in Schedule III, except those specified in paragraph 5 of
the said schedule.
(4) A banking company or a financial institution including a non-
banking financial company, engaged in supplying services by way of ac-
cepting deposits, extending loans or advances shall have the option to ei-
ther 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Provided that the option once exercised shall not be withdrawn dur-
ing the remaining part of the financial year :
Provided further that the restriction of fifty per cent. shall not apply to
the tax paid on supplies made by one registered person to another regis-
tered person having the same Permanent Account Number.
(5) Notwithstanding anything contained in sub-section (1) of section
16 and sub-section (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 and other conveyances except when they are used -
(i) for making the following taxable supplies, namely :-
(A) further supply of such vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such 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;
(ab) service of general insurance, servicing, repair and mainte-
nance in so far as they relate to motor vehicles, vessels or air-
craft 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 speci-
fied therein;
(ii) where received by a taxable person engaged -
(I) in the manufacture of such motor vehicles, ves-
sels or aircraft; or
(II) in the supply of general insurance services in re-
GST LAW TIMES  13th August 2020  163