Page 121 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : SHILPA MEDICARE LTD. 335
services - “Services by way of transfer of a going concern, as a whole or an in-
dependent part thereof” attract “nil” rate of GST under Serial No. 2 of Notifi-
cation No. 12/2017-C.T. (Rate) - Section 7 and Part 4(c) of Schedule-II to Central
Goods and Services Tax Act, 2017. [paras 7, 8]
Transfer of a going concern - Unutilised input tax credit - Transferor
can transfer unutilised input tax credit to transferee lying in its electronic cred-
it ledger, by filing Form GST ITC-02 - Section 18 of Central Goods and Ser-
vices Tax Act, 2017 - Rule 41 of Central Goods and Services Tax Rules, 2017.
[paras 7, 8]
Ruling in favour of assessee
REPRESENTED BY : Shri Muralidhar, Tax Consultant, for the Assessee.
[Order]. - The present application has been filed u/s. 97 of the Central
Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (herein-
after referred to CGST Act and APGST Act respectively) by M/s. Shilpa Medi-
care Limited., (hereinafter referred to as applicant), registered under the Goods &
Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except
for certain provisions. Therefore, unless a specific mention of the dissimilar pro-
vision is made, a reference to the CGST Act would also mean a reference to the
same provision under the APGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
APGST Act would be mentioned as being under the GST Act.
3. Brief facts of the case :
M/s. Shilpa Medicare Limited undertakes Research & Development
work in Active Pharmaceutical Ingredient (API) & formulation molecules &
manufacture of formulation products in small quantity for R & D purpose.
R&D centre is involved in formulation & Analytical development and al-
so method validations for analytical tools. Formulation research centre is concen-
trated in developing generic equivalents and super generics to reference listed
Drugs for Global Market like USA, Europe and Row for injectable and oral for-
mulations used for the treatment of cancer and other indications like Multiple
sclerosis, Hypertension, CNS disorders, Anti-Diabetics, Myasthenia gravis,
Ogilvie syndrome, Ulcerative colitis urinary retention, liver diseases, HIV, smok-
ing cessation, Alopecia, and eye disorders etc.,
M/s. Shilpa Medicare Limited unit at Survey No. 207, Modavalasa Vil-
lage, Denkada Mandal, Vizianagaram, Andhra Pradesh-531162 vide GST No.
37AADCS8788F1ZR undertakes R&D work and the whole business will be shift-
ed to M/s. Shilpa Medicare Limited, Plot No. 29-A5, Avverahalli Industrial Area,
Bengaluru, (Bangalore) Rural, Karnataka-562117, which is ongoing concern vide
GST No. 29AADCS8788F1ZO.
The applicant stated that they filed GST returns for the month of Jan., 19
with input Credit balance as mentioned below, as on 29-7-2019.
Input IGST-2,29,24,118.00, Input CGST-50,50,789.00 and Input SGST-
35,40,668.00.
The applicant submits that they would like to file ITC-02 to enable the
Bengaluru Unit to avail the input credit of Vizianagaram Unit.
GST LAW TIMES  20th August 2020  121