Itc 02 vs GSTR 2A and 2B

[sumanta nayak]

in case of transfer of business,ITC available on the date of transfer can be transferred. In case some suppliers file GSTR-1 after due date the same can not be claimed as ITC for the month of Transfer due to Cap of 10% or 5%.Then how to tranfer the balance ITC ?.Can we file ITC-02 after obtaining all ITC in 3B on next two or three months?

[Ganeshan Kalyani]

In my view, the time limit is not given for filing ITC-02. I am also of the view that you can transfer entire ITC without considering 10% or 5% rule as they are applicable to claim credit. And in your case you are transferring the ITC.

AI Summary

Input tax credit transfer can include entire available ITC on business transfer despite claim timing restrictions. No statutory time limit is prescribed for filing Form ITC-02; the 10%/5% claim limitations apply to claiming input tax credit, not to transferring it on transfer of business. Therefore, the transferor may transfer the entire ITC available as on the date of transfer via ITC-02, and may file ITC-02 after recording belated supplier credits in subsequent GSTR-3B filings.