The Central Board of Indirect Taxes and customs vide its notification dated 21st March 2020 has issued a special procedure for corporate debtors undergoing corporate insolvency resolution process.
Key Highlights from the Notification.
1. The Registered persons, who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 shall be treated as a distinct person of the corporate debtor from the date of appointment of IRP / RP and shall obtain a 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 .
2. However, in cases where the IRP/RP has been appointed prior to the date of this notification, he shall take 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 .
3. Further, those registered persons shall file their first return under section 40 of the said Act, from the date on which he becomes liable to registration till the date on which registration has been granted. The notification also prescribes the rules regarding the input tax credit to such persons.
4. The said classes of person shall also be eligible to avail input tax credit on invoices covering the supplies of goods or services or both, received since his appointment as IRP/RP.
5. Any amount deposited in the cash ledger by the IRP/RP, in the existing registration, from the date of appointment of IRP/RP to the date of registration in terms of this notification shall be available for refund to the erstwhile registration.
Click here to read the Notification.
