alleryStart learning →On merger or sale with liability transfer, unutilised ITC is?
ALapsed on the sale date
BRefunded in cash to seller
CShared among creditors
DTransferred to new business
Answer & Solution
Correct answer: D. Transferred to new business
Section 18(3) allows transfer of unutilised credit in the electronic credit ledger to the transferee business when the transfer includes specific provisions for liabilities.
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