Seeks to make amendments to special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016

Last updated: 09 May 2020

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This notification introduces amendments to the special procedure for corporate debtors undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Specifically, it clarifies that corporate debtors who have filed all prior tax statements and returns before the appointment of an Interim Resolution Professional (IRP) or Resolution Professional (RP) are excluded from this special procedure. Furthermore, with effect from 21st March 2020, the IRP/RP will be treated as a distinct person from the corporate debtor and must obtain new GST registrations in each state or union territory where the corporate debtor was previously registered within 30 days of their appointment or by 30th June 2020, whichever is later.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Notification No. 39/2020 – Central Tax

New Delhi, the 5th May, 2020

G.S.R.....(E).– In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.11/2020- Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 194(E), dated the 21st March, 2020, namely:-

In the said notification

(i) in the first paragraph, the following proviso shall be inserted, namely: -

“Provided that the said class of persons shall not include those corporate debtors who have furnished the statements under section 37 and the returns under section 39 of the said Act for all the tax periods prior to the appointment of IRP/RP.”;

(ii) for the paragraph 2, with effect from the 21st March, 2020, the following paragraph shall be substituted, namely: -

“2. Registration.- The said class of persons shall, with effect from the date of appointment of IRP / RP, be treated as a distinct person of the corporate debtor, and shall be liable to take a new registration (hereinafter referred to as the 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:.”.

[F. No. CBEC-20/06/04/2020-GST]

(Pramod Kumar)

Director, Government of India

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 11/2020-Central Tax, dated the 21st March, 2020, published vide number G.S.R. 194(E), dated the 21st March, 2020.

FAQ :

The notification amends the special procedure for corporate debtors undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

Corporate debtors who have furnished all required statements and returns for tax periods prior to the appointment of an Interim Resolution Professional (IRP) or Resolution Professional (RP) are excluded.

With effect from 21st March 2020, the IRP/RP will be treated as a distinct person and must obtain a new GST registration in each state or union territory where the corporate debtor was previously registered.

The new registration must be obtained within thirty days of the appointment of the IRP/RP or by 30th June 2020, whichever is later.

Guest

Notification No : Notification No. 39/2020 – Central Tax
Published in GST
Source : https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-39-central-tax-english-2020.pdf

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