Rules Rule 41 of CGST Rules 2017 i.e. Transfer of Input Tax Credit on sale, merger, amalgamation, lease or transfer of a business
Financial Year: 2017
Rule 41 of CGST Rules
Transfer of credit on sale, merger, amalgamation, lease or transfer of a business
(1) A registered person shall, in the event of
sale,
merger,
de-merger,
amalgamation,
lease or
transfer
or change in the ownership of business for any reason,
furnish the details of
sale,
merger,
de-merger,
amalgamation,
lease or
transfer of business,
in FORM GST ITC-02,
electronically on the common portal
along with a request
for transfer of unutilized input tax credit lying in his electronic credit ledger
to the transferee
Provided that in the case of demerger,
the input tax credit shall be apportioned
in the ratio of the value of assets of the
new units as specified in the demerger scheme.
Explanation:-
For the purpose of this sub-rule, it is hereby clarified that the ?
value of assets means the value of the entire assets of the business,
whether or not input tax credit has been availed thereon.
(2) The transferor shall also submit a
copy of a certificate issued by a practicing chartered accountant or cost accountant
certifying that the sale, merger, de-merger, amalgamation, lease or transfer of business
has been done with a specific provision for the transfer of liabilities.
(3) The transferee shall, on the common portal,
accept the details
so furnished by the transferor and,
upon such acceptance,
the un-utilized credit specified in FORM GST ITC-02
shall be credited to his electronic credit ledger.
(4) The inputs and capital goods so transferred
shall be duly accounted for by the transferee in his books of account.
Thanks
CA Rahul Gupta