What is New Form GST ITC-02A ? enabled on GST Portal

What is Form GST ITC-02A ?

As per Rule 41A of CGST Rules, where a taxpayer has obtained separate registration for multiple places of business in a single state and where he wants to Transfer part of full unutilized ITC to such Newly registered place of business then functionality to Transfer ITC by way of ITC-02A form has been enabled on GST common portal.

illustration:-

Ram Ltd. has operations in Delhi with GSTIN:07AAxxxxxxxX1ZR (Shop-A)having credits in electronics credit ledger available is as follows CGST: Rs.100/- SGST: Rs.100/- and IGST Rs.1000/-

A new registration is taken in the same state for different segments of business on 1st May 20 with GSTIN:07AAxxxxxxxX1ZN (Shop-B) wanted to utilize credit available with the shop-A to file GSTR-3B.

Now, Shop-A should file GST-ITC-02A within 30 days of 1st May 2020 by 31st May 2020. Shop-B should accept by clicking on Take Action. Shop-A has an option to transfer all or partly based on the “value of asset” by the company on the date of registration. Hence asset with Shop-A is Rs.100,000/- and Shop-B is Rs.100,000/- on 1st May 2020 so ratio is 1:1. Available ITC will be divided equally between Shop-A and Shop-B.

What is Rule 41A ?

Rule 41A is 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.

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.

Details to be Furnished in ITC-02A ?

for more details visit:- https://services.gst.gov.in/services/login

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