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TMI BlogMerger of two GSTIN in the same State - Procedure to be followedX X X X Extracts X X X X X X X X Extracts X X X X ..... There are two registrations in one State. There is one manufacturing unit under each of the registrations. To merger both the GSTINs, is it required that - (i) finished goods to be sold by raising tax invoice from one unit to another unit; (ii) stores and spares to be sold by raising tax invoice from one unit to another unit and (iii) plant and machinery to be sold by raising tax invoice from unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to another unit. The second unit (which is going to be continued) can avail ITC. But, transfer of stores and spares, plant and machinery is a cumbersome task, involving huge documentation. Since both the units are of same company, is it required to transfer stores spares and Plant machinery also by raising tax invoice. Experts are requested to give their views. - Reply By Sadanand Bulbule - The R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply = Dear querist, Plz refer: Liability in case of amalgamation or merger of companies. Section 87 . (1) When two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to the date of the order and any two or more of such companies have supplied or received any goods or services or both to or f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom each other during the period commencing on the date from which the order takes effect till the date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and they shall be liable to pay tax accordingly. (2) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from the date of the said order. 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit 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 transferor shall also submit a copy of a certificate issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC- 02 shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By haribabu koduri - The Reply = Section 87 deals with merger, amalgamation or transfer of business of one company to another company. In the instant case, the intended transfer is between two GSTINs of the same company, in one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State. - Reply By Sadanand Bulbule - The Reply = Are your two registrations are companies or what is the status? - Reply By haribabu koduri - The Reply = Company is one. We have two GSTINs - One for one unit and another for 2nd unit. Both are in the same State. PAN is same. We have taken separate GSTIN for 2nd unit (new line) since the State incentive department has advised us. Now, they told if y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou are able to identify sales, then there is no requirement of separate registration. To have administrative convenience, we want to cancel one registration and merge both the units into one GSTIN. - Merger of two GSTIN in the same State - Procedure to be followed - Query Started By: - haribabu koduri Dated:- 19-11-2024 Last Replied Date:- 19-11-2024 Goods and Services Tax - GST - Got 4 Replies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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