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Can a business transfer ITC from 1 branch to other?

Kenil Satra (Trainee) (59 Points)

09 April 2021

Can a private limited company registered in Maharashtra transfer the available ITC in Electronic Credit Ledger to its branch office registered in Gujarat. (NOTE: ITC available in electronic credit ledger at Maharashtra and need to transfer it to Gujarat office).

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6 Replies

Ankit Neema (2742 Points)
Replied 09 April 2021

I my view you have to take registration as ISD, for distribution of ITC,
for more you should consult with you Consultant

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 09 April 2021

You cannot transfer ITC from one office to another office unless it is in way of merger and sale of business.

In case of transfer of business by way of sale of business, merger or demerger, a registered taxpayer can transfer the input tax credit unutilised and available in his electronic credit ledger into another business by filing a declaration in Form GST ITC-02.