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ITC 02A- How to transfer ITC to another GST registration? | LogiTax
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ITC 02A- How to transfer ITC to another GST registration?

03-06-2024
GST
Mrudula Joshi

ITC 02A- How to transfer ITC to another GST registration?

A person with multiple business locations within a State or Union Territory can obtain separate GST registrations for each location. If a registered person with multiple GST registrations within a State /UT wants to transfer unutilized matched Input Tax Credit (ITC) from one entity (transferor) to another (transferee), the transferor must file Form GST ITC-02A on the GST Portal within 30 days of obtaining the new registration. The transferee (newly registered entity) can then accept or reject the ITC transfer.

How to file Form ITC 02A on the GST common portal?

To transfer ITC and file Form GST ITC-02A as a transferor entity, perform the following steps:

  1. Access the www.gst.gov.in URL. The GST Home page is displayed. Login to the GST Portal with valid credentials.
  2. Click the Services > Returns > ITC Forms command. ITC 02A- How to transfer ITC to another GST registration?
  3. The GST ITC Forms page is displayed. Click the TRANSFER ITC button on the GST ITC-02A tile. ITC 02A- How to transfer ITC to another GST registration?
  4. Enter the GSTIN of the Transferee. Based on the GSTIN of the Transferee, the Transferee Legal Name and Trade Name are auto-populated.
  5. The amount of credit available in the Electronic Credit Ledger is displayed. Enter the details of ITC to be transferred to the Transferee. You can enter all or part of ITC as available in this table for transfer. Click SAVE to save the details. ITC 02A- How to transfer ITC to another GST registration? 5a. A confirmation message is displayed that data is saved successfully. ITC 02A- How to transfer ITC to another GST registration?
  6. Click the PREVIEW button to view the summary page of Form GST ITC-02A for your review. ITC 02A- How to transfer ITC to another GST registration? 6a. The summary page of Form GST ITC-02A in PDF format is displayed. ITC 02A- How to transfer ITC to another GST registration?
  7. Select the checkbox for declaration. From the Authorised Signatory drop-down list, select the authorized signatory. Click the FILE ITC WITH DSC or FILE ITC WITH EVC button, as applicable. ITC 02A- How to transfer ITC to another GST registration? (a) To FILE ITC WITH DSC: Click the PROCEED button and then select the certificate and click the SIGN button.

    (b) To FILE ITC WITH EVC: Enter the OTP sent by email and mobile number of the Authorized Signatory registered at the GST Portal and click the VERIFY button.
  8. Click PROCEED. ITC 02A- How to transfer ITC to another GST registration?
  9. The success message with ARN is displayed. The status of Form GST ITC-02A is changed to Filed. ITC 02A- How to transfer ITC to another GST registration? Note: After Form GST ITC-02A is successfully filed by the transferor entity:
    • An e-mail and SMS notification will go to the transferee entity for their acceptance or rejection of Form ITC-02A, in order to transfer or reject the Input tax credit being transferred.
    • Post filing of Form GST ITC-02A, the Electronic Credit Ledger of the transferor entity will get updated with a debit entry for the amount mentioned in the Form.
  10. Click the DOWNLOAD FILED GST ITC-02A (PDF) button to download Form GST ITC-02A. ITC 02A- How to transfer ITC to another GST registration?
  11. Form GST ITC-02A is displayed in PDF format. ITC 02A- How to transfer ITC to another GST registration?

How can I take action and file Form GST ITC-02A?

A person having multiple places of business in a State or Union territory may be granted separate registration for each place of business.

Suppose a registered person, who has obtained separate registration for multiple places of business in a State/UT and intends to transfer unutilized matched Input Tax Credit lying in his/her Electronic Credit Ledger of an existing entity (the transferor entity) to a newly registered entities/place of businesses (transferee entity). In that case, the transferor entity (existing entity) has to file Form GST ITC-02A on the GST Portal, within 30 days of obtaining such registration, and the transferee entity (newly registered entity) can accept or reject the same.

After the transferor entity successfully files Form GST ITC-02A, transferee entity needs to accept or reject Form ITC-02A, in order to transfer or reject the Input tax credit being transferred.

To take action and file Form GST ITC-02A as a transferee entity, perform the following steps:

  1. Access the www.gst.gov.in URL. The GST Home page is displayed. Login to the GST Portal with valid credentials.
  2. Click the Services > Returns > ITC Forms command.
  3. The GST ITC Forms page is displayed. Click the TAKE ACTION button on the GST ITC-02A tile. ITC 02A- How to transfer ITC to another GST registration?
  4. A list of all ARNs that are pending for action, accepted or rejected by the transferee entity is displayed. Select the ARN hyperlink to take action. ITC 02A- How to transfer ITC to another GST registration?
  5. By clicking on ARN, details of ITC which is to be transferred by the transferor entity get displayed. Click either ACCEPT or REJECT based upon the decision that you want to exercise as the transferee entity. ITC 02A- How to transfer ITC to another GST registration? Note :
    • You cannot modify the amount as a transferee entity.
    • On acceptance by the transferee entity, ITC will be transferred to the transferee entity.
    • On rejection by the transferee entity, ITC will not be transferred to the transferee entity and the amount mentioned in ‘Form GST ITC-02A’ will be re-credited in the Electronic Credit Ledger of the transferor entity.
  6. (a) In case of acceptance: A confirmation message is displayed on the screen that you have successfully accepted the declaration of transfer of ITC in Form GST ITC-02A. ITC 02A- How to transfer ITC to another GST registration? (b) In case of rejection: A confirmation message is displayed on the screen that you have successfully rejected the declaration of transfer of ITC in Form GST ITC-02A. ITC 02A- How to transfer ITC to another GST registration?
  7. Select the checkbox for declaration. From the Authorised Signatory drop-down list, select the authorized signatory. Click the FILE ITC WITH DSC or FILE ITC WITH EVC button. ITC 02A- How to transfer ITC to another GST registration? (a) To FILE ITC WITH DSC: Click the PROCEED button and then select the certificate and click the SIGN button.

    To FILE ITC WITH EVC: Enter the OTP sent by email and mobile number of the Authorized Signatory registered at the GST Portal and click the VERIFY button.
  8. Click PROCEED. ITC 02A- How to transfer ITC to another GST registration?
  9. The success message with ARN is displayed. The status of Form GST ITC-02A is changed to Filed. ITC 02A- How to transfer ITC to another GST registration? Note: After Form GST ITC-02A is successfully filed by the transferee entity:
    • An e-mail and SMS notification will go to the transferor entity for action taken by the transferee as acceptance/ rejection in the form.
    • On acceptance by the transferee entity, the Electronic Credit Ledger of the transferee entity will be updated accordingly.
    • On rejection by the transferee entity, ITC will not be transferred to the transferee entity and the amount mentioned in ‘Form GST ITC-02A’ will be re-credited in the Electronic Credit Ledger of the transferor entity.
    Electronic Credit Ledger of transferor entity: ITC 02A- How to transfer ITC to another GST registration?
  10. Click the DOWNLOAD button to download Form GST ITC-02A. ITC 02A- How to transfer ITC to another GST registration?
  11. Form GST ITC-02A is displayed in PDF format. ITC 02A- How to transfer ITC to another GST registration?

Conclusion :

Transferring Input Tax Credit (ITC) within multiple business locations under the same GST registration is a straightforward process with the help of Form GST ITC-02A. By following the outlined steps on the GST Portal, both the transferor and transferee entities can ensure a smooth transfer of unutilized ITC. This procedure helps maintain compliance and optimize the use of available tax credits, enhancing financial efficiency. Always remember to complete the process within the stipulated 30 days to avoid any complications. Stay informed and utilize the GST portal effectively to manage your ITC transfers.

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