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Yes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to trans...
Wazzeer Professional Network
ProfessionalWe are in talks of buying a local suppliers business. Can we claim the un-utilized input tax credit of the supplier immediately? Please advise
-
Wazzeer Professional Network
ProfessionalYes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized, provided that the registered person furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in Form GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.
Therefore, if you are registered under the Act, you should be eligible to claim such unutilized credits. In case you are not registered, you will have to make a fresh application for registration and claim such unutilized credits after intimating to the department.
over 2 years ago
Yes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to trans...
Wazzeer Professional Network
ProfessionalWe are in talks of buying a local suppliers business. Can we claim the un-utilized input tax credit of the supplier immediately? Please advise
-
Wazzeer Professional Network
ProfessionalYes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized, provided that the registered person furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in Form GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.
Therefore, if you are registered under the Act, you should be eligible to claim such unutilized credits. In case you are not registered, you will have to make a fresh application for registration and claim such unutilized credits after intimating to the department.
over 2 years ago
View answer
We are in talks of buying a local suppliers business. Can we claim the un-utilized input tax credit of the supplier immediately? Please advise
-
Wazzeer Professional Network
ProfessionalYes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized, provided that the registered person furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in Form GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.
Therefore, if you are registered under the Act, you should be eligible to claim such unutilized credits. In case you are not registered, you will have to make a fresh application for registration and claim such unutilized credits after intimating to the department.
over 2 years ago -
Wazzeer Professional Network
ProfessionalYes, there is no specific provision prohibiting transfer of such unutilized credit. In fact, the Act specifically provides that when there is a change in constitution of a registered person on account of sale, merger, or amalgamation of business with specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized, provided that the registered person furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in Form GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.
Therefore, if you are registered under the Act, you should be eligible to claim such unutilized credits. In case you are not registered, you will have to make a fresh application for registration and claim such unutilized credits after intimating to the department.
over 2 years ago
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