The Goods & Services Tax Network (“GSTN”)enables new registration functionality for Insolvency Resolution Professionals
By EDITORIAL TEAM - INSOL India Posted On : July 27, 2020
The Central Board of Excise & Customs (“CBIC”) had directed, videnotificationdated 23 March 2020, that corporate debtors shall be liable to obtain a new registration under the GST regime throughits appointedInterim Resolution Professionals (“IRP”) or Resolution Professionals (“RP”).
A corporate debtor is liable to submit its GST returns to the CBIC, pay taxes& fulfill all other GST related compliances,in accordance with the applicable laws, during CIRP. An entity undergoing CIRPshall be treated as a distinct/separate person from its earlier GST registration &as such,they are liable to obtain a new registration throughits IRP /RP. In the event that the statements made in form GSTR-1 and returns filed in form GSTR-3B for all taxation periods prior tothe appointment of the IRP/RP werefurnished under the earlier GST registration of the corporate debtor, then a fresh registration would not be required.
Accordingly, the IRP/RP is now required to apply for a new GST registration on behalf of the corporate debtor within 30 days from the date of admission of the corporate debtor into CIRP or by 1June 2020, whichever is later.
The GSTN, on 27May 2020,confirmed that it had enabled a new registration functionality on the GST portal for registered entities who had become corporate debtors under the provisions of the IBC. This new functionality will be applicable to companies undergoing CIRP under the supervision of an IRP / RP. The usage of this function requires the IRP or RP (so appointed)to obtain a new registration under the GST regime and choose the reason (in the drop-down menu) for such new registration as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process (CIRP) by IRP/RP”.
A corporate debtor is liable to submit its GST returns to the CBIC, pay taxes& fulfill all other GST related compliances,in accordance with the applicable laws, during CIRP. An entity undergoing CIRPshall be treated as a distinct/separate person from its earlier GST registration &as such,they are liable to obtain a new registration throughits IRP /RP. In the event that the statements made in form GSTR-1 and returns filed in form GSTR-3B for all taxation periods prior tothe appointment of the IRP/RP werefurnished under the earlier GST registration of the corporate debtor, then a fresh registration would not be required.
Accordingly, the IRP/RP is now required to apply for a new GST registration on behalf of the corporate debtor within 30 days from the date of admission of the corporate debtor into CIRP or by 1June 2020, whichever is later.
The GSTN, on 27May 2020,confirmed that it had enabled a new registration functionality on the GST portal for registered entities who had become corporate debtors under the provisions of the IBC. This new functionality will be applicable to companies undergoing CIRP under the supervision of an IRP / RP. The usage of this function requires the IRP or RP (so appointed)to obtain a new registration under the GST regime and choose the reason (in the drop-down menu) for such new registration as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process (CIRP) by IRP/RP”.