In a major development, a new registration functionality has been enabled on the Goods and Services Tax (GST) portal by Goods and Services Tax Network (GSTN). Basically, the new registration functionality has been enabled for erstwhile registered entities who are now corporate debtors under the provisions of the Insolvency and Bankruptcy Code (IBC).
Which companies to benefit?
This facility of new registration functionality will benefit the companies that are undergoing the corporate insolvency resolution process and whose management affairs are being undertaken by interim resolution professionals (IRPs) or resolution professionals (RPs).
How to use this new functionality?
To use this functionality, the appointed IRP/RP should choose the reason to obtain new registration in the drop-down menu as “corporate debtor undergoing the corporate insolvency resolution process by IRP/RP” while applying for registration on the GST portal.
In March, the CBIC said the corporate debtors shall be liable to obtain new registration through IRP or RP. Accordingly, the IRP/RPs can apply for new registration on behalf of corporate debtors within 30 days from their appointment or by June 1, 2020, whichever is later.
A corporate debtor undergoing insolvency is liable to furnish its GST returns, make payment of tax and meet all other GST compliances as per the GST law during the corporate insolvency resolution process (CIRP) period.
Such corporate debtors shall be treated as a distinct person and they are liable to take new registration through IRP/RP w.E.F. The date of appointment of such IRP/RP for management of affairs of the corporate debtors.
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