Why ITC-02A has to be filed?
if registered person intends to transfer the unutilized ITC lying in Electronic Credit Ledger to newly registered place of business then details in Form ITC-02A has to be furnished.
To whom this facility is available?
This facility is available only to such registered person who has obtained separate registration for multiple place of business in accordance with Rule 11 of the CGST Rules, 2017.
Time Limit to file?
Form ITC-02A has to be filed within a period of thirty days from obtaining such separate registrations.
What are the Conditions to avail such facility?
ITC shall be transferred to newly registered entities in the ratio of the value of assets held by them at time of registration.
What is the Meaning of Value of Assets?
Value of assets means the value of the entire assets of the business whether or not input tax credit has been availed thereon.
When Rule 41A was inserted in CGST Rules, 2017?
Rule 41A of The CGST Rules, 2017 was inserted vide Notification no. 03/2019-CT dt. 29.01.2019 w.e.f. 01.02.2019
What Action has to be taken by transferee ?
The newly registered person (transferee) has to accept the details furnished by transferor and unutilized ITC shall be credited to his Electronic Credit Ledger.
Relevant Rules: Rule 11 and Rule 41A of the CGST Rules, 2017 has been mentioned below for quick reference by readers
Rule 41A. Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory
“(1) A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on the common portal, either directly or through a Facilitation Centre notified in this behalf by the Commissioner:
Provided that the input tax credit shall be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration.
Explanation.- For the purposes of this sub-rule, it is hereby clarified that the ‗value of assets‘ means the value of the entire assets of the business whether or not input tax credit has been availed thereon.
(2) The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.]”
User Manual on Filing of Form ITC-02A by GST Portal
FAQ on filing of Form ITC-02A by GST Portal
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Screenshot of functionality available on portal
Form ITC-02A on GST Portal
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Mr. Setia is a CA by Profession and expert in the field of Indirect Taxation Based in Delhi. Rich experience of over 5 year.