What is O2A form under GST
GST ITC-02A form is used by registered taxpayers who own businesses at multiple locations within a state or union territory to transfer their input tax credit (ITC) from the registered entity to a new one.
This article provides a comprehensive understanding of the provisions related to the GST ITC-02A Form and outlines the steps that both the transferor and transferee must follow to transfer ITC successfully.
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What is the Purpose of Using the GST ITC-02A Form?
Transferring ITC is similar to the ITC distribution by an Input Service Distributor (ISD), but it occurs within the same state or union territory and is based on asset distribution.
In a scenario where a branch is established within the same state and the principal place of business purchases capital goods, inputs, or input services for the new branch. The principal place of business may have already claimed ITC for these items.
However, since the new branch will consume these ITC claims and use the goods and services, an ITC-02A form must be filed to transfer this unutilised ITC to the newly established branch.
Format of Form ITC-02A
ITC-02A contains details of both the transferor and the transferee, such as:
- GSTIN of the transferor
- The legal name of the transferor
- Trade name of the transferor, if any
- GSTIN of the transferee
- The legal name of the transferee
- Trade name of the transferee, if any
- Details of the ITC to be transferred
- Tax/Cess – Values of tax or cess must be filled
- Amount of matched ITC available – The values are auto-populated
- Amount of matched ITC to be transferred – The amount of ITC that needs to be transferred must be calculated using the previously mentioned asset value ratio before being entered in this column.
- Verification
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How to file ITC-02A Form?
The transferor must follow the following steps to file the form:
- Use valid login information to access the GST portal, then proceed to the ITC-02A page.
- Go to Services > Returns > ITC Forms from the home page.
Under the ‘GST ITC-02A’ section, select ‘Transfer ITC’.
You’ll be redirected to the “Declaration of transfer of ITC in case of obtaining separate registration within a State or Union Territory” page will be displayed.
- Enter relevant details of the ITC to be transferred
Fill in the transferee’s GSTIN. The “Transferee Legal Name” and “Transferee Trade Name” will automatically populate. Then click “Save” after entering the values in the “Amount of matched ITC to be transferred” column.
A confirmation message will appear notifying “Details saved successfully”.
- Preview the ITC-02A form before filing.
To view the completed drafted form, use the option “Preview Draft GST ITC-02A (PDF).”
The summary page will be shown as below:
- ITC-02A can be submitted using EVC or DSC
Tick on the declaration box. Click on the authorised signatory from the drop-down and choose either “File ITC with EVC” or “File ITC with DSC.”
To sign the document, click on digital signature if you have chosen “File ITC with DSC.”
Enter the OTP issued to the registered email address and mobile number if “File ITC with EVC” is selected.
After the warning message appears, click on “Proceed.”
Along with the ARN, a message confirming successful submission will be displayed. You can download the filed form in PDF format as well.
The amount of the transfer will be debited from the electronic credit ledger.
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What are the Steps to be Followed by the Transferee Entity?
An email and SMS message will instantly be delivered to the transferee upon the successful submission of ITC-02A. Following the steps below, the branch can accept or reject the transfer.
- Use valid login information to access the GST portal.
Go to Services > Returns > ITC Forms from the homepage.
- After the necessary verification, take action by accepting or rejecting the ITC that has been transferred to you.
Select “Take Action” from the drop-down menu next to the “GST ITC-02A” button.
Select the relevant ARN that is pending to be taken action on. A complete list of ARNs with the status “Accepted,” “Rejected,” or “Pending for Action” is shown.
The transferee GSTIN must confirm the following information:
- GSTIN/UIN, legal name, and ITC-02A and ARN filing dates for the transferor entity.
- As submitted by the transferor, the amount of matched ITC is being transferred.
The transferee should double-check the information given and press the “Accept” button if everything is correct. Click the “Reject” button if they are not.
If approved, the confirmation message will read, “You have successfully accepted the declaration of transfer of ITC in GST ITC-02A. Kindly proceed for filing.”
If refused, the notification will read, “You have rejected the declaration of transfer of ITC in GST ITC-02A. Kindly proceed for filing.”
- Submit the ITC transfer declaration using ITC-02A
Tick the Declaration checkbox. Click the “File ITC with EVC” or “File ITC with DSC” button, depending on which option is appropriate, after selecting the authorised signatory from the drop-down list.
Select the digital signature and click “Sign” if the “File ITC with DSC” button is chosen.
Enter the OTP issued to the registered email address and mobile number if “File ITC with EVC” is selected. There will be a warning message displayed. Then, select “Proceed.”
The ARN and the confirmation message will be displayed. You can download the filed form in PDF format as well. Email and SMS messages will be used to inform the transferor of the result.
If Accepted:
The transferee’s electronic credit ledger will be credited as follows:
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Frequently Asked Questions
- Who is eligible to file ITC-02 on the GST portal?Entities registered under GST who wish to transfer unutilized Input Tax Credit (ITC) from one GSTIN to another during a merger, demerger, transfer of business, or change in constitution are eligible to file ITC-02.
- What are the prerequisites for filing ITC-02?The transferor and transferee must have valid GST registrations. The transferor should have an unutilized ITC balance in the Electronic Credit Ledger, and the business transfer should be properly documented and compliant with GST rules.
- What documents are required to file ITC-02?Key documents include the business transfer agreement, certificate from a Chartered Accountant or Cost Accountant verifying the transfer of liabilities, and other supporting documents demonstrating compliance with GST laws.
- How do I access the ITC-02 form on the GST portal?Log in to the GST portal using your credentials. Navigate to Services > Returns > ITC Forms > File ITC-02. Select the relevant GSTIN and proceed to fill out the form.
- What steps are involved in filing ITC-02?Steps include accessing the ITC-02 form, entering the ITC details to be transferred, uploading the required documents, verifying the information, submitting the form, and signing it using a digital signature or e-sign.
- Are there any fees associated with filing ITC-02?No, there are no government fees for filing ITC-02 on the GST portal. However, professional fees may apply if you hire a consultant to assist with the filing.
- How can I track the status of my ITC-02 filing?Log in to the GST portal, navigate to Services > Returns > Track Application Status, and enter the ARN (Acknowledgment Reference Number) generated during submission to check the application status.
- What are the common errors to avoid while filing ITC-02?Errors include incorrect GSTIN details, mismatched ITC amounts, incomplete documentation, and failing to comply with eligibility criteria. Double-check all details and attachments before submission.
- What should I do if my ITC-02 application is rejected?If rejected, review the rejection reason provided on the portal. Rectify the errors, gather correct documents, and resubmit the application. Seek professional help if necessary to avoid repeated issues.
