
Transfer of Input Tax Credit
A registered taxpayer can apply for transfer of matched input tax credit that is available in the Electronic Ledger to another business organization in case of transfer of business by way of sale of business/ merger/ demerger by the filing of ITC declaration in Form GST ITC - 02. In this article, we look at the procedure for transfer of input tax credit through the GST portal in detail.GST ITC-02 Filing
GST ITC-02 can be filed for transfer or matched input tax credit in case of the following circumstances:- In case any registered institution undergoes sale, merger, de-merger, amalgamation, lease or transfer, the institution or organization must file an ITC declaration for transfer of ITC in the Form GST ITC-02.
- The acquired/ transferer institution should have matched Input Tax Credit available in the Electronic Credit Ledger, that is effective from the date of merger/ acquisition/ amalgamation/ lease/ transfer.
- The transferee and the transferor should have GST registration.
- It is mandatory for the transferor to file all GST returns in the past periods.
- All the pending transactions for the action of merging should either be accepted, rejected or modified and all liabilities of the returns filed by the transferor must be paid.
- The transfer of business has to be with an accurate provision of transfer of liabilities which will be the stayed demands of tax, or with any litigation /recovery cases. It has to be accompanied by the certificate that is issued by the Chartered Accountant or Cost Accountant.
Transfer of ITC
Given below are the ITC that can be transferred by filing the form GST ITC - 02.- Matched ITC balance available in the transferor's Electronic Credit Ledger.
- The ITC appearing under major heads such as Central tax, State/ UT tax, integrated tax, and CESS can be transferred by filing form GST ITC - 02.
Transfer of Matched Unutilized ITC by the Transferor
Given below are the steps to transfer the matched the unutilized ITC by filing Form GST ITC - 02. Step 1: Log on to the official The transferor or the acquiring entity has to log on to the GST Portal. The GST Home page is displayed. Step 2: Enter the Credentials The user has to enter all the credentials to log in to the GST Portal. The taxpayer's dashboard gets displayed on the screen. Step 3: Click on the ITC Forms GO to Services tab, click on Return option an then click on 'ITC Forms'. The GST ITC forms page is displayed on the screen.

- Name of the certifying accounting firm
- Name of the certifying Chartered Accountant / Cost Accountant in the certifying firm
- Membership number of the certifying firm
- Date of the certificate issued by the certifying accounting firm

Transfer of Matched Unutilized ITC by the Transferee
Once the transferor has filed Form GST ITC - 02 to transfer the matched unutilized ITC, the transferee needs to login to the GST Portal and has to either accept or reject the ITC transfer. Here are the steps to process the ITC transfer. Step 1: Login to the Portal The transferee has to login to the GST Portal and is required to enter the credentials. Step 2: Click on ITC 02 From the Servies tab, click the 'User Services' and then select 'ITC 02 – Pending for actions' options.


About the Author
BENNISHA THURAI CPost By IndiaFilings.
Updated on: April 19th, 2019
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