Whether Input Tax Credit Can Be Transferred Across States Pursuant to an NCLT-Approved Amalgamation?

Introduction

This significant judgment of the Gujarat High Court addresses an important issue under the GST regime relating to the transfer of Input Tax Credit (ITC) during corporate restructuring. The dispute arose because the GST portal restricted transfer of ITC through Form GST ITC-02 where the transferor and transferee entities were registered in different States, even though the amalgamation had been approved by the National Company Law Tribunal (NCLT).