GST Update on Demerger of organisation



Quick Summary
This article clarifies the Goods and Services Tax (GST) procedure for demergers, focusing on the apportionment of unutilised input tax credit (ITC). Following Circular No. 133/03/2020-GST, it explains that ITC is allocated based on the value of assets at the State level, not the all-India level. The update also details the process for filing FORM GST ITC-02 and how to calculate the transferable ITC amount across different tax heads.

On 14th March 2020, council meeting was held wherein few decisions were taken and few were postponed. In this update we shall discuss one of the decisions taken with regard to the procedure in case of sale, merger, de merger of business. Giving effect to the decision taken in the meeting, circular n
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