The Government while recommending in 39th GST Council Meeting stated that clarifications would be issued in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules. Hence, they have come out with the Circular No. 132/3/2020 dated 23rd March, 2020 to clarify the above matter.

The Circulars says that: