Input Credit Balance

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This query is : Resolved

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This discussion clarifies whether input GST credit from a previous business activity can be claimed against the output liability of a new business line. The consensus is that unutilised input credit can be transferred to a new business by filing the GST ITC-02 form on the common portal, provided the credit arose during the operational period of the original business.

Abhishek Jain

Abhishek Jain (Querist)

09 May 2020 Dear Sir ,

As i discharged gst liabilty till march 2020 as per gst rules but lots of party submit bill in the month of april to june for last year as in next year i want to change my business line from earlier line so can i still claim input credit against output liabilty of new line business as i already paid output liabilty.

CA Anita Bhadra

CA Anita Bhadra (Expert)

10 May 2020 You are allowed to transfer unutilized credit to new business by filing GST ITC 02 in the common portal

Abhishek Jain

Abhishek Jain (Querist)

10 May 2020 HI ,

I am not mergering or amalgmation my business as i am just starting new activity of business as per earlier so i can claim input credit balance against new activity output liabilty.

c.bakshi

c.bakshi (Expert)

11 May 2020 see just understand the provision, when that input credit arises, you are into that business activity which is your operational activity and you can claim that unutilised amount of credit now. i am fully agree with Anita Mam

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