Rule 41, Central Goods and Services Tax Rules, 2017 [S10-EC7]
As at 1 July 2017. In force from 1 July 2017 by Notification No. 10/2017-Central Tax, dated 28-6-2017 [N10-0KR].
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, 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 credit shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.
(2) The transfer or shall also submit a copy of a certificate issued by 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 transfer or and, upon such acceptance, the un-utilized credit specified in FORM GST ITC-02 shall 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.
Defined terms in this text (10)
business: Section 2(17), Central Goods and Services Tax Act, 2017: "business" includes - (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
business: Section 2, Bengal Indigo Contracts Act, 1836 [S10P0G] (In this Act, unless the context otherwise requires,—): "business" includes every trade, occupation and profession
business: Section 2, Stage-Carriages Act, 1861 [S1228A] (In this Act, unless the context otherwise requires,—): "business" includes every trade, occupation and profession
business: 11 more definitions.
goods: Section 2, Bengal Indigo Contracts Act, 1836 [S10P0G] (In this Act, unless the context otherwise requires,—): "goods" means every kind of movable property other than actionable claims and money, and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale
goods: Section 2, Stage-Carriages Act, 1861 [S1228A] (In this Act, unless the context otherwise requires,—): "goods" means every kind of movable property other than actionable claims and money, and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale
goods: Section 2, Commercial Documents Evidence Act, 1939 [S18EMR] (In this Act, unless the context otherwise requires,—): "goods" means every kind of movable property other than actionable claims and money, and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale
goods: 36 more definitions.
input tax credit: Section 2(63), Central Goods and Services Tax Act, 2017: "input tax credit" means the credit of input tax;
lease: Section 105, Transfer of Property Act: "A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. [Lessor, lessee, premium and rent defined] The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent."
lease: Section 2(7), Registration Act: "lease" includes a counterpart, kabuliyat, an undertaking to cultivate or occupy, and an agreement to lease;
person: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "person" shall include any company or association or body of individuals, whether incorporated or not
person: 1 more definition.
registered: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (49) "registered", used with reference to a document, shall mean registered in India under the law for the time being in force for the registration of documents;
registered person: Section 2(94), Central Goods and Services Tax Act, 2017: "registered person" means a person who is registered under section 25 but does not include a person having a Unique Identity Number;
rule: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (51) "rule" shall mean a rule made in exercise of a power conferred by any enactment, and shall include a Regulation made as a rule under any enactment;
sale: Section 54, Transfer of Property Act: "Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. [Sale how made] Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. [...] [Contract for sale] A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.
value: Section 2(41), Customs Act, 1962: "value", in relation to any goods, means the value thereof determined in accordance with the provisions of sub-section (1) or sub-section (2) of section 14;
Made under this rule, or naming it (1)
Circular No. 133/03/2020-GST [C10-4NP], 23 March 2020, in force. The text contains "sub-rule (1) of rule 41of the Central Goods and Services Tax Rules, 2017".
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