Transfer of ITC from individual to LLP

Yes, ITC can be transferred from individual firms to LLP, subject to compliance with Section 18(3), Rule 41 and filing of GST ITC-02.

Yes, ITC can be transferred from individual firms to LLP, subject to compliance with Section 18(3), Rule 41 and filing of GST ITC-02.

ITC transfer from an individual firm to an LLP is allowed under Section 18(3) of the CGST Act, but only when the transfer is on a going concern basis, meaning the entire business or an independent part of it is being handed over. The process requires filing Form GST ITC-02 by the transferee (the new LLP) on the GST portal, with the transferor accepting it. A key condition is that the LLP must be registered under GST. If the transfer is treated as a supply rather than a going concern transfer, ITC does not move and the original registrant may need to reverse credit under Rule 44. For a full picture on what qualifies for ITC and what gets blocked, this [GST ITC eligibility and GSTR-2B reconciliation guide](https://taxgarden.in/blog/gst-input-tax-credit-eligibility-gstr-2b-reconciliation) covers the framework that applies before and after restructuring.