The value of assets which are outside the purview of GST is required to be included in the value of assets for apportionment towards transfer of input tax credit in case of demerger in terms of Section 18(3) of CGST Act, 2017.
Authority for Advance Ruling — Demerger – The applicant is dealing in information technology products and services and is primarily engaged in producing, selling or licensing computer hardware, middleware and software and in providing IT implementation, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. The applicant sought an advance ruling as to whether the value of assets which are outside the purview of GST is required to be included in the value of assets for the purpose of apportionment towards transfer of ITC in case of de-merger in terms of Section 18(3) read with Rule 41(1) of CGST Rules, 2017; if the answer is yes, whether assets which are created only to comply with the requirements of the Accounting Standards and Assets which are not being transferred as part of de-merger, are required to be considered for the purpose of determining the value of assets for apportionment towards transfer of ITC in case of de-merger in terms of Section 18(3) read with Rule 41(1) of 2017;
Held that:- The Hon’ble Authority for Advance Ruling held that the value of assets which are outside the purview of GST is required to be included in the value of assets for apportionment towards transfer of ITC in case of demerger in terms of Section 18(3) read with Rule 41(1). The value of assets includes the assets which are created only to comply with the requirement of accounting standards and also the assets which are not being transferred as part of demerger.
The value of assets which are outside the purview of GST is required to be included in the value of assets for apportionment towards transfer of input tax credit in case of demerger in terms of Section 18(3) of CGST Act, 2017.
Authority for Advance Ruling — Demerger – The applicant is dealing in information technology products and services and is primarily engaged in producing, selling or licensing computer hardware, middleware and software and in providing IT implementation, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. The applicant sought an advance ruling as to whether the value of assets which are outside the purview of GST is required to be included in the value of assets for the purpose of apportionment towards transfer of ITC in case of de-merger in terms of Section 18(3) read with Rule 41(1) of CGST Rules, 2017; if the answer is yes, whether assets which are created only to comply with the requirements of the Accounting Standards and Assets which are not being transferred as part of de-merger, are required to be considered for the purpose of determining the value of assets for apportionment towards transfer of ITC in case of de-merger in terms of Section 18(3) read with Rule 41(1) of 2017;
Held that:- The Hon’ble Authority for Advance Ruling held that the value of assets which are outside the purview of GST is required to be included in the value of assets for apportionment towards transfer of ITC in case of demerger in terms of Section 18(3) read with Rule 41(1). The value of assets includes the assets which are created only to comply with the requirement of accounting standards and also the assets which are not being transferred as part of demerger.