Apportionment of input tax credit: State-level asset ratios govern ITC transfer and Form GST ITC-02 filing procedures. Clarification explains transfer and apportionment of input tax credit on business reorganisations under section 18(3) JGST Act and rule 41(1) JGST Rules: apportionment for demergers and similar partial transfers is to be computed at the State level for distinct registrations, using the value of entire assets specified in the demerger scheme; the asset-value ratio is taken as on the appointed date of demerger and applied to the transferor's unutilized ITC balance on the date of filing Form GST ITC-02. The ratio applies to the total ITC (CGST, SGST/UTGST, IGST and cess), and the transferor may distribute the transferable sum among tax heads subject to available balances. Form GST ITC-02 is required only where both transferor and transferee are registered in the State.