Clarification in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of UPSGST Act read with rule 41(1) of UPSGST Rules

Clarification in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of UPSGST Act read with rule 41(1) of UPSGST Rules https://www.taxtmi.com/circulars?id=69870 Apportionment of input tax credit under section 18(3) and rule 41(1) is clarified for business reorganization, including demerger, merger, amalgamation, lease and transfer with liabilities. In demerger, the transferable ITC is to be apportioned by the ratio of the value of assets of the new units as specified in the scheme, using the State-level value of assets and not an all-India basis. The formula applies to total unutilized ITC, including CGST, UPGST, IGST and Cess, and the relevant ITC balance is the amount available on the date of filing FORM GST ITC-02. en-us Thu, 26 Mar 2020 00:00:00 +0530 Fri, 01 May 2026 11:44:20 +0530 TaxTMI RSS Generator Clarification in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of UPSGST Act read with rule 41(1) of UPSGST Rules https://www.taxtmi.com/circulars?id=69870 Apportionment of input tax credit under section 18(3) and rule 41(1) is clarified for business reorganization, including demerger, merger, amalgamation, lease and transfer with liabilities. In demerger, the transferable ITC is to be apportioned by the ratio of the value of assets of the new units as specified in the scheme, using the State-level value of assets and not an all-India basis. The formula applies to total unutilized ITC, including CGST, UPGST, IGST and Cess, and the relevant ITC balance is the amount available on the date of filing FORM GST ITC-02. Circulars GST - States Thu, 26 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/circulars?id=69870