Held - The input tax credit available, in the ledger of the transferor, arises out of the tax component paid on the goods, by the transferor, etc. The input tax so credited has to be used, to discharge further liability, to the tax authorities. This is one of the assets available with the transferor. In the case of a sale of the entire business, it would only be reasonable that this asset, in the form of input tax .....

Held - As per Section 18 (3) of the CGST Act, 2017, 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,.....

Held - The reading of sub-section (3) of Section 18, which permit transfer of the ITC, which has remain un-utilized, when there is change in the constitution of a registered person either on account of sale, merger, demerger, amalgamation, lease or transfer of the business and the credit lie un-utilized in his electronic credit ledger, to be transferred to the sold, merged, demerged, amalgamated, lea.....

Held: That apart, sub-section 4 to Section 25 of the Central Goods and Service Tax Act, 2017 also makes it clear that a person who has obtained or is required to obtain more than one registration in a State or Union Territory, whether in one State or Union Territory or more than one State or Union Territory shall, in respect of each such registration, be treated as a “distinct persons” for the purpose o.....

Held - The GST law comprising of the Central GST Act, the Integrated GST Act and State/UT GST Acts, does not envisage the transfer of ITC in the form of CGST and SGST/UTGST accumulated in one State to another State. The scope of the AP GST Act cannot extend beyond the territory of the State of Andhra Pradesh. Similarly, the KSGST Act cannot extend beyond the borders of the State of Karnataka. Credit (ITC) accumulat.....

Held - We find from the facts presented by the applicant that there is input tax credit unutilised under different heads of CGST and SGST and IGST in its Andhra Pradesh unit.

It evident from the above that in case of sale or transfer, the transferor can transfer unutilised input tax credit to the transferee, which is lying in his electronic credit ledger, by filing Form GST ITC-.....