CBIC Amends the special procedure for corporate debtors

The Central Board of Indirect Taxes vide notification dated 5th May 2020 has amended the special procedure for corporate debtors under the insolvency and bankruptcy code 2016.

CBIC in its earlier notification dated 21st march 2020 had laid down the special procedure to be followed in the case of Corporate Debtors under the Insolvency and Bankruptcy Code (IBC).

Based on the GST council decision the members decided to introduce a special procedure for registered persons who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow the following special procedure, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process.

This notification provides 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 Interim Resolution Professional (IRP)/Resolution Professional (RP).

Further, the Registration part of Special Procedure has been substituted which state that 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 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.

Click here to read the Notification.

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