Rule 41. Transfer of credit on sale, merger,
amalgamation, lease or transfer of a business.-
(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 ITC-02, electronically
on the common portal along with a request for transfer of unutilized 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 of the new
units as specified in the demerger scheme.
1[Explanation : - For the purpose of this sub-rule, it
is hereby clarified that the "value of assets" means the value of the
entire assets of the business, whether or not input tax credit has been availed
thereon.]
(2) The transfer or 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 details so furnished by the transfer or 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 of account.
