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How to file GST ITC-02A and in which ratio?

As per the CGST Act 2017, Any person can take multiple registrations on the same PAN in a state. From today. Form GST ITC-02A is enabled to file on GST common portal.

This form will use to transfer the unutilized input tax credit within the same state or union territory. In this article, we will discuss how to transfer ITC from one GSTIN to another and in what ratio.

Rule 41A of the CGST Rules 2017, deal with the 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 unutilized 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 unutilized input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.


How to file GST ITC-02A?

Step 1. To file GST ITC – 02A. First of all, you need to login on GST Portal using your login Credentials.

Step 2. Go to Services >>Return>>ITC Forms

GST ITC 02A 

Step 3. Click on Transfer ITC and Fill the details.

GST ITC 02A

1) GSTIN of Transferee: Fill the GSTIN of newly registered business verticle to whom you want to transfer ITC. This will auto-populate Transferee’s legal name and trade name.

2) Amount of matched ITC to be transferred: Amount available in electronics credit ledger of which amount to be transferred needs to mentioned according to the head of tax Central tax, State/UT Tax, Integrated Tax.

3) Save the above details and submit with DSC/ EVC.

GST ITC 02A

Next Transferee needs to login to the common portal and clicks on take action to accept credits transferred.

Example:

MN Private Limited has operations in Uttar Pradesh with GSTIN:09AAxxxxxxxX1ZM (UP1) having credits in electronics ledger available is as follows CGST: Rs. 20,000, SGST: Rs.20,000, IGST Rs.1,00,000. A new registration is taken in the same state for different segments of business on 27 May 20 with GSTIN:09AAxxxxxxxX1ZN (UP2) wanted to utilize credit available with UP1 to file GSTR-3B. UP1 should file GST-ITC-02A within 30 days of 27th May 2020 by 26 June 2020. UP2 should accept by clicking on the Take-action button. UP1 has an option to transfer all or partly based on the value of the asset by the company on the date of registration. Hence asset with UP1 is Rs.30,00,000 and UP2 is Rs.15,00,000 on 27 May 2020 so ratio is 2:1. Available ITC will be divided into 2:1 between UP1 and UP2.

TaxClue Team

Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at info@taxclue.in

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