refund of input tax availability of refund to the successor company

[Umesh Marike]

The firm X has transferred its business as a whole to company Y. The firm is exporter of services and has unutilised input tax credit (GST input) eligible for refund. The firm is yet to claim refund from the department. The firm intends to transfer the input to the transferee company which as per provisions of Rule 41 it can. Now the transferee company is also an exporter and does not carry on any local supply. In such circumstance whether the transferee company can claim refund of input tax transferred by transferer firm based on export performance of the transferor firm. I have not been able to find any provision relating to the claim by transferee in the Act or Rules. Can any one opine on this?

AI Summary

Firm Seeks ITC Transfer to Successor Under Rule 41; Uncertainty Over Refund Claim Based on Export Performance A firm transferred its business to another company, both exporters of services, with unutilized input tax credit (ITC) eligible for refund. The firm intends to transfer this ITC to the successor company under Rule 41. However, there is uncertainty about whether the successor can claim a refund based on the transferor's export performance, as no specific provision exists for this in the Act or Rules. A respondent confirmed the lack of such a provision and suggested exporting services by paying IGST to claim refunds, advising to verify the procedure with one invoice first.