Whether, consequent upon merger of propritor concern as a going concern with a private limited company, the ITC available in the credit ledger or cash ledger of the propirtorship firm is eligible to be transferred to the respective ledger account of the private limited company. ?
Input Tax Credit available in credit ledger account of proprietorship firm shall be transferred to respective credit ledger account of private limited company, consequent upon merger, subject to provisions of section 18(3)of CGST/HGST act 2017 and Rule 41 of CGST/HGST rule.
The said provisions are applicable to transfer of un-utilised ITC and are not applicable to un-utilized balance lying in electronic cash ledger.
AUTHORITY FOR ADVANCE RULINGS, HARYANA
B.M. Industries, In re
SANGEETA KARMAKAR AND VIJAY KUMAR SINGH, MEMBER
ADVANCE RULING NO. HAR/HAAR/R/2018-19/02
JUNE 20, 2018
Pankaj Malik, CA and Harish Arora for the Applicant.
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