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

Transfer of Input Tax Credit Allowed Without 10% or 5% Cap When Filing ITC-02 Post Business Transfer Under GST A query was raised regarding the transfer of Input Tax Credit (ITC) during a business transfer under the Goods and Services Tax (GST) framework. The issue highlighted was the inability to claim ITC for the month of transfer if suppliers file GSTR-1 late, due to a cap of 10% or 5%. The question was whether ITC-02 can be filed after obtaining all ITC in GSTR-3B over the following months. The response indicated that there is no specific time limit for filing ITC-02 and suggested that the entire ITC can be transferred without considering the 10% or 5% rule.