Page 124 - GSTL_20th August 2020_Vol 39_Part 3

338 GST LAW TIMES [ Vol. 39
Now we decide whether the applicant can file GST ITC-02 return and
transfer unutilised ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru,
Karnataka Unit.
We find from the facts presented by the applicant that there is input tax
credit unutilised under different heads of CGST, SGST and IGST in its Andhra
Pradesh unit. In this regard its observed that Section 18(3) of CGST Act, 2017
provides as under;
Section 18. Availability of credit in special circumstances. -
(3) Where there is a change in the constitution of a registered person on
account of sale, merger, demerger, amalgamation, lease or transfer of the
business with the specific provisions for transfer of liabilities, the said regis-
tered person shall be allowed to transfer the input tax credit which remains
unutilised in his electronic credit ledger to such sold, merged, demerged,
amalgamated, leased or transferred business in such manner as may be pre-
scribed.
Further, Rule 41 of CGST Rules provides as under :
Transfer of credit on sale, merger, amalgamation, lease or transfer of a
business. - (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, demerger,
amalgamation, lease or transfer of business, in FORM GST ITC-02, electron-
ically 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 appor-
tioned in the ratio of the value of assets of the new units as specified in the
demerger scheme.
(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, demerger, 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 unutilized 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.
It evident from the above that in case of sale or transfer, the transferor can trans-
fer unutilised input tax credit to the transferee, which is lying in his electronic
credit ledger, by filing Form GST ITC-02.
8. In view of the observations stated above, the following ruling is is-
sued.
RULING
Question : Whether the transaction would amount to supply of goods
or supply of services or supply of goods & services?
Answer : Supply of services.
Question : Whether the transaction would cover Sl. No. 2 of the Notifi-
cation No. 12/2017-Central Tax (Rate), dated 28-6-2017?
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