MERGER OF BUSINESS AND ITC-002

[NILESH PITALE]

Dear Experts

My One of the Client was carrying Proprietary Business, From 1st April 2021 he merged his Proprietary Business with PVT Limited .There is ITC Credit available in the Credit Ledger of Proprietary Business.

Under this Circumstances whether It is necessary to Canceled Proprietary"s GST no. because after six month he will start to provide renting business in Proprietary which will be taxable.

Can we Filed ITC-002 (Transfer of ITC) without cancellation of Proprietary"s GST no.

If Cancellation is Mandatory then can we canceled Now to get Effect of 1.4.2021

is there any time limit to filed ITC-002

Please Guide.

AI Summary

Transfer of input tax credit via ITC-02 permitted; cancellation may be required if proprietorship is dissolved, no time limit.
A registered taxpayer may transfer unutilised input tax credit of a transferred business by filing Form ITC-02, with the transferor filing the declaration and the transferee accepting or rejecting the credit. No statutory time limit for filing ITC-02 is specified. Where a proprietorship is dissolved on merger into a company, the proprietorship's GST registration falls within cancellation grounds; ITC attributable to the merged business should be transferred and registration cancelled to reflect cessation of the legal entity.