Refund of ITC transferred through ITC 02

[Rajesh Kumar]

Sir / madam

Please guide, is refund claim of unutilized ITC available which was transferred through ITC-02 to which party cannot claim and utilise due to GST rates on inputs materials are higher than the outward ?

if yes, what are the terms and conditions as per provisions?

AI Summary

Debate on Refund of Unutilized ITC Transferred via ITC-02 Under Section 18(3) of CGST Act and Rule 41 A query was raised regarding the refund of unutilized Input Tax Credit (ITC) transferred through ITC-02 when GST rates on input materials are higher than those on output materials. One expert explained that ITC transfer under ITC-02 is applicable in cases of business sale, merger, demerger, amalgamation, lease, or transfer, as per section 18(3) of the CGST Act, 2017, and rule 41 of the CGST Rules, 2017. Another expert mentioned that claiming such a refund might be challenging unless the credit can be utilized for other supplies with higher tax rates. A third expert confirmed the refund's admissibility.