AMALGAMATION/TRANSFER OF BUSINESS

1. Details of sale, merger, de-merger, amalgamation, lease or transfer or change in ownership of business for any reason should be furnished with a request to transfer the unutilized input tax credit lying in his electronic credit ledger to the transferee.
2. In the case of de-merger, the input tax credit shall be apportioned in the ratio of the value of assets of the new units as per de-merger scheme.
3. The transferor 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 transfer of liabilities
4. The transferee shall, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM CST ITC-02 shall be credited to his electronic credit ledger.
5. The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account.