Know about Form GST ITC-02A prescribed under rule 41A
Know about Form GST ITC-02A prescribed under rule 41A [ Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory] (w.e.f. 01.02.2019) vide Notification No.03/2019-CT dated 29.01.2019.
1. What is Form GST ITC-02A?
As per section 25(2) of the CGST act, a person having multiple places of business in a State or Union territory may be granted separate registration for each place of business. Though it is not mandatory to obtain separate registration for each place of business.
Form ITC-02A is a declaration for transfer of matched ITC pursuant to registration under sub-section (2) of section 25 i.e registration of multiple places of business in a state/ union territory.
2. When filing of Form GST ITC-02A is needed for a taxpayer?
If any registered person has obtained separate registration for multiple places of business in a State/UT and has matched unutilised input tax credit (ITC) in electronic credit ledger of existing business and wish to transfer such matched unutilised ITC to newly registered place of businesses can transfer such ITC of existing business by filling form GST ITC-02A on GST Portal, within 30 days from obtaining such new separate registration.
3. From where can taxpayer file the form on GST portal?
Taxpayer can access ITC-02A form by navigating to Services > Returns > ITC Forms > TRANSFER ITC after logging into the common portal.
Post filing of ITC form, Electronic Credit Ledger of existing entity will get updated with a debit entry for the amount mentioned in the Form.
4. From where can newly registered entity take action on ITC-02A form filed by existing entity?
Newly registered entity, can take action in ITC-02A form by navigating to Services > Returns > ITC Forms > TAKE ACTION after logging into the GST Portal.
5. What actions can be taken by the new entity in ITC-02A form?
Newly registered entity, can either accept or reject ITC-02A and consequently can accept or reject ITC transferred by the existing entity.
6. What happens after acceptance of ITC by the Newly registered entity and successful filing of the form ?
After acceptance of ITC by the Newly registered entity Electronic Credit Ledger of Newly registered entity will be updated for the transferred amount.
7. Is preview of the form available before filing?
Yes, you can preview the ITC-02A form before filing it on the GST Portal, as an existing entity.
8. What are the modes of signing the form ?
You can file ITC-02A using DSC, or EVC.
9. Is there any formula for transfer of unutilised ITC?
Yes. The input tax credit shall be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration.
For the purposes of this, 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.
