Goods and/or services received by a taxable person are used for the purpose of business and non-business supplies
Sec 17 (1) Where the goods and/or services are used by the registered taxable person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business.
Hence, As per section 17(1) of the revised MGL, the input tax credit of goods and / or service attributable to only supplies effected for business purpose can be taken by registered taxable person.
The amount of eligible credit would be calculated in a manner to be prescribed in terms of section 16(7) of the MGL read with GST ITC Rules (yet to be issued).
It is important to note that credit on capital goods also would now be permitted on proportionate basis.