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Rule 54(1A) of C

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This query is : Resolved

Rajkumar Gutti (Querist)

20 August 2025 Can we use rule 54 (1A) regularly for transfer of common input credit ( Both RCM & FCM ) from regular registration to ISD registration in same state, having same pan.

Further ISD transfer the same to respective distinct person.

Or this rule is made strictly for RCM purpose.
Please guide.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

20 August 2025 Yes, you can regularly use Rule 54(1A) for transferring common input tax credit (both RCM and FCM) from a regular registration to an ISD in the same State with the same PAN. The ISD then distributes this credit to distinct recipient units. This mechanism is not strictly for RCM, though it is often critical for handling RCM credits due to ISD’s inability to pay RCM tax directly.

Just keep in mind the non‑supply nature of this transaction, operational timing constraints, and the intra-state requirement.

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