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Itc transfer

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Jyoti Narang

Kkk

1204 Points Posted on 21 August 2020

if a firm wants to transfer itc to a New firm what's the procedure of it. n form for it.

Replies (5)

Quick Summary

This discussion outlines the procedure for transferring unutilised Input Tax Credit (ITC) when a business undergoes a change in its constitution, such as shifting from a proprietorship to a partnership. It references Section 18(3) of the CGST Act 2017 and Rule 41(2) of the CGST Rules 2017, which detail the process and the need for a chartered accountant's certificate confirming the transfer of liabilities. The conversation also touches upon the implications for GSTN numbers and PAN when such transfers occur.

prasad Nilugal

3924 Points Posted on 21 August 2020

Are they having two different GSTN number ?.

Jyoti Narang

Kkk

1204 Points Posted on 21 August 2020

Yes of course because of change in constitution of firm from proprietor to partnership firm with same name

prasad Nilugal

GST Practitioner & Accounts

15146 Points Posted on 21 August 2020

As per section 18 sub section (3) of the CGST 2017 , you can transfer input Tax credit which remain underutilized in his Electronic credit ledger , when change in the constitution of a registered person in case of transfer of business .

However as per rule 41(2) of the CGST rule 2017 , The transferor shall also submit a copy of a certificate issued by a practicing chartered Accountant certifying transfer of Business has been done with a specific previsions for the transfer liabilities .

please confirm with others also.