Topic
Publish Date
Inter-State Transfer of ITC on Merger: Kerala AAR Opens the Door for Cross-GSTIN Credit Movement
When companies merge across State lines, assets and liabilities travel seamlessly on paper. But does the Input Tax Credit (ITC) sitting in one State’s electronic credit ledger have the same freedom of movement? The Kerala Authority for Advance Ruling (AAR), in M/s Flytxt Mobile Solutions Pvt. Ltd. - AAR No. KER/23/2025, dated 23 July 2025, has given a significant and taxpayer-friendly answer: yes, ITC in the form of CGST and IGST can be transferred...... Read More
Application of GST on Transfer of Business
To expand the business it can be seen that the entity usually transfers their business as a going concern like the conversion of proprietorship into partnership or conversion of partnership into the company or merger, demerger, amalgamation etc. In case of transfer of an existing business there are many questions that comes into the mind such as (1) Whether such conversion would be taxable ? (2) What would happen to unutilized ITC of proprietorship ..... Read More