Earlier, the CBIC had issued Notification No. 11/2020 – Central Tax dated 21 March 2020 (‘NN. 11/2020’) to provide special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. Subsequently, a series of notifications were issues regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act, 2017. Further, two circulars were also issues to clarify various issues being faced by the taxpayers with respect to the relief measures.
However, certain issues were still being faced by the taxpayers in adhering to the compliance requirements in respect of corporate resolution process and other procedural requirements due to the COVID-19 pandemic. In order to clarify the same, the CBIC has issued Circular No. 138/08/2020 – GST dated 06 May 2020. Following are the key highlights of the said Circular:
Sr. No. |
Issue |
Clarification |
1 |
NN. 11/2020 provided that an Interim Resolution Professionals ('IRP') is required to separately register within 30 days of the issuance of notification, however, the IRP / Resolution Professionals ('RP') were facing certain issues in obtaining the registration due the lockdown, accordingly an extension was requested |
IRP/RP shall now be required to obtain registration within thirty days of the appointment of the IRP/RP or by 30 June 2020, whichever is later. |
2 |
Clarification has been sought whether IRP would be required to take a fresh registration even when they are complying with all the provisions of the GST Law under the registration of Corporate Debtor |
IRP/RP would not be required to take a fresh registration in those cases where statements in Form GSTR-1 and returns in Form GSTR-3B for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor |
3 |
NN. 11/2020 has used the terms IRP and RP interchangeably, and in cases where an appointed IRP is not ratified and a separate RP is appointed, whether the same new GSTIN shall be transferred from the IRP to RP, or both will need to take fresh registration |
(i) In cases where the RP is not the same as IRP, or in cases where a different IRP/RP is appointed midway during the insolvency process, the change in the GST system may be carried out by an amendment in the |
4 |
Registered suppliers are allowed to supply the goods to a merchant exporter at 0.1% provided, inter-alia, that the merchant exporter exports the goods within a period of 90 days from the date of issue of a tax invoice by the registered supplier. In respect thereto, it has been requested to clarify the provision vis-à-vis the exemption provided vide notification no. 35/2020-Central Tax dated 03 April 2020. |
The requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30 June 2020, provided the completion of such 90 days period falls within 20 March 2020 to 29 June 2020. |
5 |
Whether the extension of time limit as provided in terms of notification No. 35/2020-Central Tax dated 03 April 2020 also covers furnishing of |
The due date of furnishing of FORM GST ITC-04 for the quarter ending March, 2020 stands extended up to 30 June 2020. |
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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