claiming of input tax credit

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... claiming of input tax credit
Query (Issue) Started By: - ShankarDurgaVaraPrasad P Dated:- 20-8-2020 Last Reply Date:- 22-8-2020 Goods and Services Tax - GST
Got 2 Replies
GST
Good afternoon one and all, hi have one query. one of my clients wants to purchase a beauty parlour which was already established. The seller wants to charge on sale value of beauty parlour. The buyer (my client .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ) wants to use the gst paid as input. Is it possibe to claim the paid gst as input. kindly reply to this thanks in advance Reply By KASTURI SETHI: The Reply: You are to see the procedure for transfer of going on concern. As per Schedule-II (serial no.4), it is a supply of services but exempted vide notification no. 12/17-CT(R) dated 28.6.17 as amended (serial no.2 refers). The business will be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... transferred as a whole. An assessee can transfer its un-utilized Input Tax Credit to the buyer of the business in accordance with the provisions of Section 18(3) of the CGST/SGST Act, 2017 read with Rule 41 (1),(2),(3) & (4) of the CGST/SGST Rules, 2017. See the Explanation added to Rule 41(1) inserted w.e.f. 29.3.19. For more information on the issue, ITC is not to be shown in GSTR-3 B by the t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ransferee. As soon as ITC-02 is filed and accepted by the transferor, the amount of ITC is automatically credited to the Electronic Credit Ledger of transferee. Reply By Kashish Gupta: The Reply: Dear Shankar Durga Vara Prasad Ji The GST is not applicable when the business is transferred as a going concern. As stated by you in your query, "The buyer (my client) wants to use the gst paid a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s input." reckons that seller has charged GST on sale. This is completely wrong because of the reason that exemption given by the Government is absolute and hence mandatory. Therefore, it is advisable to transfer the unutilised input tax credit by way of filing Form GST ITC-02 only. This form is to be supported by a certificate issued by practicing chartered accountant.
Discussion Forum - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X