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All QuestionsCategory: GST CompliancesREGARDING ITC of transferee
Profile photo of Sachin SahdevSachin Sahdev asked 4 months ago

REGARDING ITC of transferee

REGARDING ITC of transferee

Dear Expert,
  I have a query, can I avail ITC of business which has been closed.
For ex, Company A was raising real estate maintenance billing and Company B was raising rental Invoices.
Now Company A business was transferred to Company C.
Company A (Real estate maintenance business) now merged with Company B (Rental Business).

  1. Can the transfree company ( Company B- Rental business) utilize the ITC of Company A (Maintenance business) ?

Yes / No, please provide specific provision

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1 Answers
Profile photo of Consultease AdministratorConsultease Administrator answered 4 months ago

In case of a merger, the ITC of transferror can be shifted to the transferee.  Section 18(3) reads as:
“Where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed.”