Section 42: Manner of determination of input tax credit in respect of inputs or input services and reversal thereof

Q: What does Section 42 of The CGST (Anti-Profiteering) Rules, 2017 (TCAPR) deal with?

Section 42 TCAPR pertains to "Manner of determination of input tax credit in respect of inputs or input services and reversal thereof". It is part of the The CGST (Anti-Profiteering) Rules, 2017, a legislation enacted by the Parliament of India. Section 42 of The CGST (Anti-Profiteering) Rules, 2017 (TCAPR) governs manner of determination of input tax credit in respect of inputs or input services and reversal thereof. As verified on 22 May 2026.

Q: Is Section 42 TCAPR still in force?

Yes, Section 42 of the The CGST (Anti-Profiteering) Rules, 2017 is currently in force across the Republic of India.

Q: What is धारा 42 TCAPR?

धारा 42 TCAPR is the Devanagari Hindi reference for Section 42 of the The CGST (Anti-Profiteering) Rules, 2017. Section 42 of The CGST (Anti-Profiteering) Rules, 2017 (TCAPR) governs manner of determination of input tax credit in respect of inputs or input services and reversal thereof. As verified on 22 May 2026.

Q: What is Dhara 42 TCAPR?

Dhara 42 TCAPR is the Roman Hindi reference for Section 42 of the The CGST (Anti-Profiteering) Rules, 2017. "Dhara" means "Section" in Hindi. Section 42 of The CGST (Anti-Profiteering) Rules, 2017 (TCAPR) governs manner of determination of input tax credit in respect of inputs or input services and reversal thereof. As verified on 22 May 2026.

Q: How to cite Section 42 of The CGST (Anti-Profiteering) Rules, 2017?

Cite as: "Section 42, The CGST (Anti-Profiteering) Rules, 2017 (TCAPR)" in legal briefs. For academic writing, use the BlueBook format: The CGST (Anti-Profiteering) Rules, 2017, 2017, § 42 (India).

Law on Tips Editorial Board

(1)

The input tax credit in respect of inputs or input services, which attract the provisions of sub-section (1) or sub-section (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,-

(2)

The [Except in case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the Act, the input tax credit] [Substituted 'input tax credit' by Notification No. G.S.R. 249(E), dated 29.3.2019 (w.e.f. 19.6.2017).] determined under sub-rule (1) shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September following the end of the financial year to which such credit relates, in the manner specified in the said sub-rule and -

(3)

[ In case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the Act, the input tax determined under sub-rule (1) shall be calculated finally, for each ongoing project or project which commences on or after 1st April, 2019, which did not undergo or did not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period from the commencement of the project or 1stJuly, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project, in the manner prescribed in the said sub-rule, with the modification that value of E/F shall be calculated taking value of E and F as under:

E= aggregate carpet area of the apartments, construction of which is exempt from tax plus aggregate carpet area of the apartments, construction of which is not exempt from tax, but which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier:

F= aggregate carpet area of the apartments in the project;

and, -

(4)

In case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the Act, the input tax determined under sub-rule (1) shall be calculated finally, for commercial portion in each project, other than residential real estate project (RREP), which underwent transition of input tax credit consequent to change of rates of tax on the 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period from the commencement of the project or 1st July, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project, in the following manner.

(5)

Input tax determined under sub- rule (1) shall not be required to be calculated finally on completion or first occupation of an RREP which underwent transition of input tax credit consequent to change of rates of tax on 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as amended.

(6)

Where any input or input service are used for more than one project, input tax credit with respect to such input or input service shall be assigned to each project on a reasonable basis and credit reversal pertaining to each project shall be carried out as per sub-rule (3).] [Inserted by Notification No. G.S.R. 249(E), dated 29.3.2019 (w.e.f. 19.6.2017).]