GST ITC Transfer: Interstate Credit Transfer Permitted After Merger

In re Flytxt Mobile Solutions Private Limited (GST AAR Kerala) Kerala Authority for Advance Ruling (AAR) has addressed a legal and technical issue concerning the transfer of Input Tax Credit (ITC) following an interstate business merger. The case involved M/s Flytxt Mobile Solutions Private Limited, a company in Kerala, which had merged with M/s Mventus Solutions Private Limited, a firm with a GST registration in Haryana. Post-merger, Flytxt attempted to transfer the unutilized ITC balance of approximately ₹22.3 lakh from Mventus’s electronic credit ledger in Haryana to its own GSTIN i...