Share :
How to transfer input tax credit between multiple GST numbers?

Under the GST regime, multiple business premises within the same state can be either be declared as an additional place of business or obtain separate registration. In the case of separate GST registration, the business premise would have to maintain separate electronic ledgers/registers. In this article, we will look at how the new establishment can claim ITC.

Manner of transfer of ITC in case of multiple GSTINs within the same state

As per Rule 41A of CGST Rules 2017, accumulated ITC balance from the transferor electronic credit ledger will be transferred to the newly registered place in the following manner-

  • ITC shall be transferred in the ratio of the value of assets held by the transferee on the date of registration.
  • Transferor will furnish Form ITC-02A on the Common portal within 30 days of new registration.
  • Transferee will accept the details filled by the transferor on the Common portal.
  • On acceptance of detail by the transferee, ITC shall be credited to the electronic credit ledger of the transferee.

Easy steps to file Form GST ITC-02A on the GST portal

Step 1: Visit the login page of the GST official website and enter valid login credentials.

Step 2: Navigate to the Service > Returns > ITC Forms.

GST ITC 02A Step 2

 

Step 3: On the GST ITC Forms page, click the 'TRANSFER ITC' button on the 'GST ITC-02A' tile.

GST ITC 02A Step 3

 

Step 4: On this screen,

  • Enter the 'GSTIN of Transferee'.
  • 'Transferee Legal Name' and 'Trade Name' will be auto-populated.
  • Enter the amount of matched ITC to be transferred.
  • Click on 'Save' details.

GST ITC 02A Step 4

 

A confirmation message will appear that details saved successfully.

Step 5: Click on the ‘Preview Draft GST ITC-02A (PDF)’ button to review the filed details.

GST ITC 02A Step 5

 

The summary page of Form GST ITC-02A in PDF format will be displayed, as given below.

Form GST ITC 02A summary page 

 


Share :
TaxGyata Team

TaxGyata Team