Apportionment of input tax credit: asset value ratio at the state registration level governs transferable ITC on reorganisations. The circular clarifies that ITC on demerger or similar partial business reorganizations is apportioned at the State/registration level using the value of assets ratio from the scheme; 'value of assets' covers entire business assets. The ratio applies to the transferor's total unutilized ITC (sum of CGST, SGST/UTGST, IGST and cess) and the transferor may allocate the transferable amount among tax heads when filing Form GST ITC 02. The asset ratio is to be taken as on the scheme's appointed date, while the ITC balance used is that on the date of filing Form GST ITC 02.