(1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de»merger, amalgamation, lease or transfer of business, in FORM GST [TC-02, electronically on the common portal along with a request for transfer ofunutilized input tax credit lying in his electronic credit ledger to the transferee:
Provided that in the case of demerger, the input tax credit shall be apportioned in the ratio of the value of assets ofthe new units as specified in the demerger scheme.
(2) The transferor shall also submit a copy of a certificate issued by a practicing chartered accountant or cost accountant certifying that the sale, merger, de-merger, amalgamation, lease or transfer of business has been done with a specific provision for the transfer of liabilities.
(3) The transferee shall, on the common portal, accept the datails so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC- 02 shall be credited to his electronic credit ledger.
(4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books ofaccount,
42. Manner of determination of input tax credit in respect of inputs or input services and reversal thereof— (1) The input tax credit in respect of inputs or input services, which attract the provisions of sub~Seotion (l) or sub»SECtiOn (2) of section l7, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,-
(a) the total input tax involved on inputs and input services in a tax period, be denoted as ‘T’;
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(b) the amount of input tax, out of "l", attributable to inputs and input services intended to be used exclusively for the purposes other than business, be denoted as T1,;
(c) the amount of input tax, out of ‘T’, attributable to inputs and input services intended to bc used exclusively for effecting exempt supplies, be denoted as ‘Tg’;
(d) the amount of input tax, out of " ’, in respect of inputs and input services on which credit is not available under sub-section (5) ofsection 17, be denoted as ‘Tg’;
(e) the amount of input tax credit credited to the electronic credit ledger of registered person, be denoted as ‘Ci’ and calculated as— C1 = T— (Ti+Tz+T3);
(f) the amount of input tax credit attributable to inputs and input services intended to be used exclusively for effecting supplies other than exempted but including zero rated supplies, be denoted as ‘T4’;
(g) ‘Tl’, ‘Tz’, ‘T3’ and ‘T4’ shall be determined and declared by the registered person at the invoice level in FORM GSTR—Z;
(11) input tax credit left after attribution of input tax credit under clause (g) shall be called common credit, be denoted as ‘Cz’ and calculated as— C2 = (31- T4;
(i) the amount of input tax credit attributable towards exempt supplies, be denoted as ‘D]’ and calculated as- D1= (E+F) X Cz where, ‘E’ is the aggregate value ofexempt supplies during the tax period, and ‘F’ is the total turnover in the State of the registered person during the tax period:
Provided that where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of ‘E/F’ shall be calculated by taking values of ‘E’ and ‘F’ ofthe last tax period for which the details of such turnover are available, previous to the month during which the said value of ‘E/F’ is to be calculated;
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Explanation: For the purposes of this clause, it is hereby clarified that the aggregate value of exempt supplies and the total turnover shall exclude the amount of any duty or tax levied under entry 84 of List I ofthe Seventh Schedule to the Constitution and entry SI and 54 of List [I ofthe said Schedule;
0) the amount of credit attributable to non—business purposes if common inputs and input services are used partly for business and partly for non—business purposes, be denoted as ‘Dg’, and shall be equal to five per cent. of C2; and
(k) the remainder of the common credit shall be the eligible input tax credit attributed to the purposes of business and for effecting supplies other than exempted supplies but including zero rated supplies and shall be denoted as ‘Cg’, where,- C3 = C2 ' (D1+Dz);
(l) the amount ‘Cg’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax;
(in) the amount equal to aggregate of ‘D[’ and ‘D2’ shall be added to the output tax liability of the registered person:
Provided that where the amount of input tax relating to inputs or input services used partly for the purposes other than business and partly for effecting exempt supplies has been identified and segregated at the invoice level by the registered person, the same shall be included in ‘T1’ and ‘T2’ respectively, and the remaining amount of credit on such inputs or input services shall be included in ‘T4’.
(2) The input tax credit determined under sub—rule (1) shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September following the end of the financial year to which such credit relates, in the manner specified in the said sub—rule and—
(a) where the aggregate of the amounts calculated finally in respect of ‘D1’ and ‘D2’ exceeds the aggregate ofthe amounts determined under sub—rule (1) in respect of ‘D;’ and ‘Dz’, such excess shall be added to the output tax liability of the registered person in the month not later than the month of September following the end of the financial year to which such credit relates and the said person shall be liable to pay interest on the said excess amount at the rate specified in sub—section (1) of section 50 for the period starting from the first day of April of the succeeding financial year till the date of payment; or
(b) where the aggregate of the amounts determined under sub-rule (1) in respect of ‘D1’ and ‘D2’ exceeds the aggregate of the amounts calculated finally in respect of ‘D1’ and ‘Dz’, such excess amount shall be claimed as credit by the registered person in his return for a month not later than the month of September following the end of the financial year to which such credit relates.