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Relief for Insolvency Professionals for obtaining new GST registration

The CBIC has issued Notification no. 39/2020 – Central Tax dated 5th May, 2020 by which following amendments are made in the earlier issued Notification no. 11/2020-Central Tax, dated 21st March, 2020:

  • In earlier issued notification it was not clear that whether the Insolvency Resolution Professionals / Resolution Professionals (IRP/RP) who have been following the provisions under GST Law for their Corporate Debtor (i.e. with old GSTIN) are again required to take new GST registration on date of their appointment as said by the new notification.
In order to clear this doubt of IRP/RP a new paragraph has been inserted which says that the requirement for obtaining registration shall not include those corporate debtors who have furnished the statements in Form GSTR 1 under section 37 and the return i.e. GSTR 3B under section 39 of the Central Goods and Services Act for all the tax periods prior to the appointment of IRP/RP.
  • Another change brought in the earlier issued notification is due to the difficulties which were being faced by IRP/RP for obtaining new GST registration due to the lockdown of COVID-19 Pandemic.
To resolve the above mentioned difficulty, now the required class of persons can obtain new registration in each of the States or Union territories where the corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP or by 30th June, 2020, whichever is later.
  • A clarification is made that if IRP has taken new GST registration and later on IRP is not appointed as RP, then new RP appointed is not required to take new GST registration again. The RP can add on his name as Primary authorized signatory by making an amendment in the Registration form which is considered as a non-core amendment. If RP does not gets login details from earlier ITP then he can his details added through the Jurisdictional authority as Primary authorized signatory.
The above mentioned notification is deemed to be in effect from 21st March, 2020. Source:https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-39-central-tax-english-2020.pdf and https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_138_8_2020.pdf

 

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