Page 113 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : NAVBHARAT LPG BOTTLING COMPANY 479
Provided that in the case of demerger, the input tax credit shall be appor-
tioned 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 prac-
ticing chartered accountant or cost accountant certifying that the sale, mer-
ger, 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 fur-
nished 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.
Rule 42. Manner of determination of input tax credit in respect of in-
puts or input services and reversal thereof. - (1) The input tax credit in
respect of inputs or input services, which attract the provisions of sub-
section (1) or sub-section (2) of section 17, being partly used for the purpos-
es of business and partly for other purposes, or partly used for effecting
taxable supplies including zero rated supplies and partly for effecting ex-
empt supplies, shall be attributed to the purposes of business or for effect-
ing taxable supplies in the following manner, namely, -
(a) the total input tax involved on inputs and input services in a
tax period, be denoted as ‘T’;
(b) the amount of input tax, out of ‘T’, attributable to inputs and
input services intended to be used exclusively for the purpos-
es other than business, be denoted as ‘T 1’;
(c) the amount of input tax, out of ‘T’, attributable to inputs and
input services intended to be used exclusively for effecting ex-
empt supplies, be denoted as ‘T 2’;
(d) the amount of input tax, out of ‘T’, in respect of inputs and in-
put services on which credit is not available under sub-section
(5) of section 17, be denoted as ‘T 3’;
(e) the amount of input tax credit credited to the electronic credit
ledger of registered person, be denoted as ‘C 1’ and calculated
as -
C 1 = T - (T 1+T 2+T 3);
(f) the amount of input tax credit attributable to inputs and input
services intended to be used exclusively for effecting supplies
other than exempted but including zero rated supplies, be de-
noted as ‘T 4’;
Explanation : For the purpose of this clause, it is hereby clari-
fied that in case of supply of services covered by clause (b) of
paragraph 5 of Schedule II of the said Act, value of T 4 shall be
zero during the construction phase because inputs and input
services will be commonly used for construction of apart-
ments booked on or before the date of issuance of completion
certificate or first occupation of the project, whichever is earli-
er, and those which are not booked by the said date.
GST LAW TIMES  23rd July 2020  113