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TMI BlogClarification in respect of issues under GST law for companies under Insolvency and Bankruptcy Code, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to as the IBC ). 2. As per IBC, once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process (hereafter referred to as CIRP ) gets triggered and the management of such entity (Corporate Debtor) and its assets vest with an interim resolution professional (hereafter referred to as IRP ) or resolution professional (hereafter referred to as RP ). It continues to run the business and operations of the said entity as a going concern till the insolvency proceeding is over and an order is passed by the National Company Law Tribunal (hereinafter referred to as the NCLT ) 3. To address the aforementioned problems, notification No. 439-F.T., dated 03.04.2020 has been issued by the Government prescrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts or proceedings against the corporate debtor is prohibited. 2. Should the GST registration of corporate debtor be cancelled? It is clarified that the GST registration of an entity for which CIRP has been initiated should not be cancelled under the provisions of section 29 of the WBGST Act, 2017. The proper officer may, if need be, suspend the registration. In case the registration of an entity undergoing CIRP has already been cancelled and it is within the period of revocation of cancellation of registration, it is advised that such cancellation may be revoked by taking appropriate steps in this regard. 3. Is IRP/RP liable to file re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake registration till the date on which registration has been granted. 6. How to avail ITC for invoices issued to the erstwhile registered person in case the IRP/RP has been appointed before issuance of notification No. 39-F.T., dated 03.04.2020 and no return has been filed by the IRP during the CIRP ? The special procedure issued under section 148 of the WBGST Act has provided the manner of availment of ITC while furnishing the first return under section 40. The said class of persons shall, in his first return, be eligible to avail input tax credit on invoices covering the supplies of goods or services or both, received since appointment as IRP/RP and during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt deposited in the cash ledger by the IRP/RP? 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 notification specifying the special procedure for corporate debtors undergoing CIRP, shall be available for refund to the erstwhile registration under the head refund of cash ledger, even though the relevant FORM GSTR-3B/GSTR-1 are not filed for the said period. The instructions contained in Trade Circular No. 45/2019-GST dt. 21.11.2019 stands modified to this extent. 5. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Commissioner. 6. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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