According to Rule 41 of Central Goods and Service Tax Act, 2017 as passed by Lok Sabha :
A registered person shall, in the event of sale, merger, de-merger
amalgamation, lease or transfer or change in the ownership of business for any reason, 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:
Provided that in the case of demerger, the input tax credit shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.
The transferor shall also submit a copy of a certificate issued by a practicing chartered accountant or cost accountant certifying that the sale, merger, de-merger, amalgamation, lease or transfer of business has been done with a specific provision for the transfer of liabilities
The transferee shall, on the common portal, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in
FORM GST ITC-02
shall be credited to his electronic credit
- The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account.