A registration of a banking company, financial institution or NBFC that is not engaged in accepting deposits or extending loans and advances (for example, exclusively bullion trading) cannot opt for section 17(4). If one registration engaged in such services opts for section 17(4), all such registrations of the entity must comply with it. Full credit under the second proviso to section 17(4) is available only on supplies from another registration with the same PAN that has also opted for section 17(4).

The circular prescribes the manner of reporting availment and reversal of input tax credit in FORM GSTR-3B, both where IMS was not used and after IMS-related rule amendments. Field formations are not to take an adverse view of a different reporting method followed for past periods, as long as the amount of credit availed is in line with these principles.