Question 1

1) What are the pre-conditions for filing of ITC declaration in FORM GST ITC-02?

Accepted Answer

The following conditions must be met for being eligible to file the FORM GST ITC-02:

Question 2

2) Which ITC can be transferred by filing FORM GST ITC-02?

Accepted Answer

The following ITC can be transferred by filing the FORM GST ITC-02:

Question 3

3) As an acquiring /transferee Entity, can I change my decision once the ACCEPT / REJECT button has been pressed?

Accepted Answer

Upon filing of the FORM GST ITC-02 by the acquired entity (transferor), such details are notified to the acquiring (transferee) entity through the GST portal. On acceptance, the un-utilized credit specified in FORM GST ITC-02 will be credited to his Electronic Credit Ledger. The Transferee (acquiring) Entity can change its decision to accept or reject an ITC transfer request any number of times until it is finally submitted by the transferor at the GST portal.

Question 4

4) What happens to the Electronic Credit Ledgers of Acquired Entity (transferor) as well as the Acquiring Entity (transferee), if the ITC transfer request filed through FORM GST ITC-02 is accepted or rejected in the system?

Accepted Answer

If the ITC transfer request of an acquired Entity (transferor), filed through FORM GST ITC-02 is ACCEPTED by the acquiring Merged Entity (transferee), the ITC will be transferred to the transferee, and the Electronic Credit Ledger of the (transferee) Acquiring Entity will get updated.

Question 5

5) In case of demerger how much of the ITC would be transferred to the demerged entity or entities?

Accepted Answer

In the case of demerger, the ITC shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.

Question 6

6) Which certificate from a practicing Chartered Accountant / Cost Accountant is required for filing FORM GST ITC-02?

Accepted Answer

For filing the FORM GST ITC-02, the acquired (transferor) entity must submit and upload a copy of certificate issued by a practicing chartered account or cost accountant, certifying that sale / merger / amalgamation / lease or transfer of business has been done with specific provision for the transfer of liabilities. The FORM GST ITC-02 cannot be filed without such certificate.

GST ITC-02

Form GST ITC -02