As per the reports, the Goods & Services Tax Network (GSTN) on Sunday, 31st May, 2020 said that it has enabled new registration functionality on the GST portal for registered entities who are now corporate debtors under the provisions of the Insolvency & Bankruptcy Code (IBC). This will benefit companies undergoing the Corporate Insolvency Resolution Process (CIRP) & whose management affairs are being undertaken by Interim Resolution Professionals (IRPs) or Resolution Professionals (RPs).
To use this function, the IRP or RP appointed should choose the reason to obtain new registration in the drop-down menu as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process (CIRP) by IRP/RP” while applying for registration on the GST portal.
In March, 2020, the Central Board of Excise & Customs (CBIC) said that the corporate debtors shall be liable to obtain new registration through IRP/RP. The IRP/RPs can now apply for new registration on behalf of its corporate debtors within 30 days from the date of their appointment or by 1st June, 2020, whichever is later.
A corporate debtor undergoing insolvency is liable to submit its GST Returns to the CBIC, make payment of tax & fulfills all other GST compliances as per the GST law during the period of CIRP.
They shall be treated as a distinct/separate person & they are liable to obtain new registration through IPR/RP w.e.f. the date of appointment of such IRP/RP for managing the affairs of the corporate debtors. Further, corporate debtors who not defaulted in furnishing the return under GST would not be required to obtain a separate registration.
If statements in form GSTR-1 & returns in form GSTR-3B for all tax periods before the appointment of IRP/RP have been furnished under the registration of corporate debtor (earlier GSTIN), then he would not be required to take a fresh registration.
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