Transfer of GST- ITC to a newly registered place of business in same State

Transfer of GST- ITC to a newly registered place of business in same State

 

Sometimes a registered person may obtain a separate new registration under the same PAN for multiple places of business in the same State. Registered person can transfer the unutilised ITC to the newly registered place of business once the following steps are completed.

1. Proper intimation to the GST Department

An existing registered person can obtain separate registration, under same PAN,  for multiple places of business within the State or Union Territory. And the Registered Person can transfer the unutilized input tax credit, whether wholly or partly, to any of the newly registered place of business. For this, he shall furnish Form GST ITC-02A on the GST- common portal within 30 days from obtaining such separate new registration.

ITC shall be transferred in the ratio of the value of assets held by the newly registered entity at the time of registration. The ‘value of assets’ mean the value of the entire assets of the business whether or not input tax credit has been availed thereon.

2. Acceptance by Transferee

The Transferee shall, on the GST-common portal, accept the details as furnished by the transferor. Once accepted by the Transferee, the unutilized ITC mentioned in Form GST ITC-02A will be credited to his electronic credit ledger.

Author – CA. Krishna Kumar FCA

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