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Can a business transfer ITC from 1 branch to other?

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Kenil Satra

Trainee

59 Points Posted on 09 April 2021

Can a private limited company registered in Maharashtra transfer the available ITC in Electronic Credit Ledger to its branch office registered in Gujarat. (NOTE: ITC available in electronic credit ledger at Maharashtra and need to transfer it to Gujarat office).

Replies (6)

Quick Summary

This discussion explores whether a private limited company can transfer its available Input Tax Credit (ITC) from its Maharashtra branch to its Gujarat branch. Generally, direct transfer of ITC between branches is not permitted unless it's part of a business sale, merger, or demerger, which requires filing Form GST ITC-02. It's advised to consult with a tax professional for specific guidance.

Ankit Neema

2742 Points Posted on 09 April 2021

I my view you have to take registration as ISD, for distribution of ITC,
for more you should consult with you Consultant

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 09 April 2021

You cannot transfer ITC from one office to another office unless it is in way of merger and sale of business.

In case of transfer of business by way of sale of business, merger or demerger, a registered taxpayer can transfer the input tax credit unutilised and available in his electronic credit ledger into another business by filing a declaration in Form GST ITC-02.