Page 70 - GSTL_2nd April 2020_Vol 35_Part 1

C6 GST LAW TIMES [ Vol. 35
input tax credit Illustration A : The ITC balances of transferor X in the
viz. CGST/ State of Maharashtra under CGST, SGST and IGST heads
SGST/IGST/ are 5 lakh, 5 lakh and 10 lakh respectively. Pursuant to a
Cess? scheme of demerger, X transfers 60% of its assets to
transferee B. Accordingly, the amount of ITC to be
transferred from A to B shall be 60% of 20 lakh (total
sum of CGST, SGST and IGST credit) i.e. 12 lakh.
(ii) How to The total amount of ITC to be transferred to the
determine the transferee (i.e. sum of CGST, SGST/UTGST and IGST
amount of ITC credit) should not exceed the amount of ITC to be
that is to be transferred, as determined under sub-rule (1) of rule 41
transferred to the of the CGST Rules [refer 3(c)(i) above]. However, the
transferee under transferor shall be at liberty to determine the amount to
each tax head be transferred under each tax head (IGST, CGST,
(IGST/CGST/ SGST/UTGST) within this total amount, subject to the
SGST) while ITC balance available with the transferor under the
filing of FORM concerned tax head. This is shown in the illustration
GST ITC-02 by below :
the transferor? (1) (2) (3) (4) (5) (6)

State Asset Tax ITC Total ITC
Ratio Heads balance of amount balance
of Trans- of ITC of Trans-
Trans- feror trans- feror
feree (pre- ferred to (post-
appor- the appor-
tionment) Trans- tionment)
as on the feree after
date of under filing of
filing FORM FORM
FORM GST GST
GST ITC-02 ITC-02)
ITC-02) [Col (4)-
Col (5)]
Delhi 70% CGST 10,00,000 10,00,000 0
SGST 10,00,000 10,00,000 0
IGST 30,00,000 15,00,000 15,00,000
Total 50,00,000 35,00,000 15,00,000
Hary- 40% CGST 25,00,000 3,00,000 22,00,000
ana
SGST 25,00,000 5,00,000 20,00,000
IGST 20,00,000 20,00,000 0
Total 70,00,000 28,00,000 42,00,000

GST LAW TIMES  2nd April 2020  134