Shifting business from one state to other - GST ITC

[Textron India]

Dear Sir / Madam,

In the case of shifting the business (Service Industry) from one state to another what is the impact of unutilized Input Tax Credit? please note, same legal entity.

[Shilpi Jain]

Take registration in new State. Move the business, which will be in the nature of transfer of business and will not be liable to GST. File ITC-02 to transfer ITC.

[KUMAR Narasimhan]

Dear Madam,

For Example I am doing business in Tamilnadu, now planning to move to Mumbai. I am having Input tax in existing registration in CGST Rs 1 lakh and SGST Rs 1 lakh and this ITC pertinent to Tamilnadu, how I can transfer it through ITC-02 to Mumbai. Please help me to understand

AI Summary

Input Tax Credit transfer: migrate accumulated ITC on business relocation by new registration and filing ITC-02. When a same-entity service business shifts between States, the movement is treated as a transfer of business not liable to GST; the business must take registration in the new State and file form ITC-02 to transfer accumulated Input Tax Credit from the old registration to the new registration.