In exercise of the powers conferred by section 148 of the CGSTA, 2017

Special procedure for corporate debtors undergoing corporate insolvency resolution process (CIRP) under IBC, 2016

Government notifies those RP, who are corporate debtors under IBC, 2016, undergoing the CIRP 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, as mentioned below.

[1][Provided that the said class of persons shall not include those corporate debtors who have furnished the statements u/s 37 and the returns u/s 39 of the said Act for all the tax periods prior to the appointment of IRP/RP.]

[2][2. Registration.-

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 (hereinafter referred to as the 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 or by 30th June, 2020, whichever is later]

3. Return.-

The said class of persons shall, after obtaining registration file the first return u/s 40 from the date on which he becomes liable to registration till the date on which registration has been granted.

4. Input tax credit.-

(1) The said class of persons shall, in his first return, be eligible to avail ITC on invoices covering the supplies of goods or services received since his appointment as IRP/RP but bearing the GSTIN of the erstwhile RP, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of section 16(4) and rule 36(4).

(2) RRs who are receiving supplies from the said class of persons shall, for the period from the date of appointment of IRP / RP till the date of registration as required in this notification or 30 days from the date of this notification, whichever is earlier, be eligible to avail ITC on invoices issued using the GSTIN of the erstwhile RP, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of 36(4).

(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.

Explanation.- For this notification, “corporate debtor”, “corporate insolvency resolution professional”, “interim resolution professional” and “resolution professional” shall have the same meaning as assigned to them in the IBC, 2016.