As per Section 25(2) the Central Goods and Services Tax Act, 2017, a registered person having multiple places of businesses in a State can take registrations for each of such place separately.
Further, Rule 41A of the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’) provides that the registered person can transfer proportionate Input Tax Credit (‘ITC’) from existing to this new registration. The ratio for transferring ITC would be calculated based on value of assets of both place of business which may be GST paid or otherwise
For transferring ITC the transferor is required to file Form GST ITC -02A within 30 days from the date of obtaining separate registrations.
The person who intends to transfer ITC may follow the following procedure:
Step-1: Go to http://www.gst.gov.in and Login with credentials > Dashboard > Returns > ITC Forms
Step-2: Enter GSTIN of transferee (to whom ITC is to be transferred) and it will auto-populate legal details of registered person
Step-3: Enter amount of ITC to be transferred in respective heads
Step-4: Save the details and submit with DSC/EVC
Step-5: Transferee has to login to common portal and click on take action to accept the credit transferred
Our Comments – Rule 41A was inserted in the CGST Rules from 01 February 2019, but its functionality has now been made live on the GSTN portal. The Rule provides that it is necessary to file Form GST ITC-02A within 30 days from the date of obtaining new registration. The Govt. should provide an option to file this form to all those registered persons who have obtained new registration under section 25 (2) after 01 February 2019 and their deadline to file this form has been lapsed as per this Rule.
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