GST form guide · updated October 2026

ITC-02A explained: sharing credit with a new registration in the same state

ITC-02A is used when a business that has one registration in a state takes a separate registration for another place of business in the same state, and wants to transfer part of its unutilised input tax credit to the new registration. It must be filed within 30 days of obtaining the new registration.

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When ITC-02A applies

A business can obtain a separate registration for each place of business within a state. When it does so, the credit already in the existing registration's ledger may partly relate to the business now carried on from the new place. Rule 41A of the CGST Rules allows that credit to be transferred to the newly registered place through Form ITC-02A.

How the credit is worked out

The unutilised credit is transferred in the ratio of the value of assets held by the new registration at the time of registration. For this purpose, value of assets means the value of the entire assets of the business, whether or not credit has been availed on them. Keep the asset schedule that supports the ratio with your working papers.

Procedure

  • The existing registration files ITC-02A within 30 days of the new registration being granted
  • The new GSTIN and the amount under each tax head are entered
  • The new registration accepts the transfer on the portal, and the credit is added to its electronic credit ledger
  • Inputs and capital goods so transferred must be recorded in the books of the new registration

Common pitfalls

The 30-day window is short and easily missed while the new branch is being set up. Credit transferred without a proper asset ratio is open to challenge in scrutiny or audit. ITC-02A only applies within the same state; for registrations in other states, credit on common services moves through the input service distributor route instead. A professional can compute the ratio and file both sides within time.

Get it handled for you

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.

Questions

ITC-02A — FAQs

What is the time limit for ITC-02A?+
Within 30 days of obtaining the separate registration for the new place of business.
Can ITC-02A be used for a branch in another state?+
No. It applies only to a new registration within the same state. Other states are separate distinct persons.
How much credit can be transferred?+
Credit is apportioned in the ratio of the value of assets held by the new registration at the time of its registration.
Does the new registration have to accept the transfer?+
Yes. The credit reaches the new GSTIN's electronic credit ledger only after it accepts the ITC-02A details on the portal.
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