Apportionment of input tax credit clarified: state-level asset ratio determines transferable ITC on business reorganisations and demergers. Clarification explains that apportionment of unutilized input tax credit on demergers and other partial business reorganisations is to be done by applying the asset-value ratio specified in the scheme at the State registration level. The asset ratio covers the entire business assets whether ITC was claimed, applies to the aggregate ITC balance (CGST, SGST/UTGST, IGST and Cess), and is to be applied to the ITC balance in the electronic credit ledger on the date of filing FORM GST ITC-02. Filing is required only where both transferor and transferee are registered in the State.