Chapter - V of CGST Rules, 2017
INPUT TAX CREDIT
RULE 41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business (corresponding section 18)
(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.
1[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.