ITC admissibility in case of Merger / Demerger

[HIMANSHU BHUSHAN]

In case of Merger, the goods dispatched with invoice by the supplier are in the name of old entity but are received to new entity (which is at different place) after a cut-off date. Can the new entity be entitled to ITC for the goods received to it, as the invoice is in the name of old entity?

AI Summary

New Entity Can Claim Input Tax Credit for Pre-Merger Goods Under Section 18(3) of CGST Act, 2017 In a discussion on the Goods and Services Tax (GST) related to mergers, a query was raised about the eligibility of a new entity to claim Input Tax Credit (ITC) when goods are received under an invoice issued to the old entity. It was clarified that the new entity can claim ITC under Section 18(3) of the CGST Act, 2017, if the goods were transferred before the merger's cut-off date and the new entity files Form ITC-02 for ITC transfer. Proper documentation and proof of business use are necessary. Additionally, if time permits, the vendor should revise the invoice to reflect the new entity.