Input tax credit apportionment in business reorganization is clarified for demerger, asset ratios, and filing of ITC-02. Apportionment of input tax credit under section 18(3) and rule 41(1) is clarified for business reorganization, including demerger, merger, amalgamation, lease and transfer with liabilities. In demerger, the transferable ITC is to be apportioned by the ratio of the value of assets of the new units as specified in the scheme, using the State-level value of assets and not an all-India basis. The formula applies to total unutilized ITC, including CGST, UPGST, IGST and Cess, and the relevant ITC balance is the amount available on the date of filing FORM GST ITC-02.