We have a GST registered Manufacturing Unit in Daman and want to transfer the unit to Maharashtra. We have huge amount of ITC Accumulated due to the high Imports under Excise and also under GST.
What is the way out / procedure to be followed to enable us to transfer the ITC to the new Unit after utilising the ITC for payment of GST Payable on raw materials, finished goods and capital goods are stock transferred to new unit?
Transferring GST-Registered Unit: Use Form GST ITC-02 for Input Tax Credit Transfer, Section 25(4) Clarifies Ownership Status A manufacturing unit registered under GST in Daman is being transferred to Maharashtra, and the owner seeks guidance on transferring accumulated Input Tax Credit (ITC) due to high imports. The initial advice suggests using Form GST ITC-02 under CGST Rules 41(1) to 41(4), which typically applies to business ownership changes. However, the owner clarifies that the transfer involves the same ownership but different state registration. The advisor confirms that under Section 25(4) of the CGST Act, 2017, this scenario is considered a transfer to a distinct person, thus the rules still apply. (AI Summary)
TaxTMI 
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