The Central Board of Indirect Taxes and Customs ( CBIC ) has amended the Special Procedure for Corporate Debtors under the Insolvency and Bankruptcy Code, 2016.
On March 21st, 2020, the CBIC had laid down the special procedure to be followed in the case of Corporate Debtors under the Insolvency and Bankruptcy Code (IBC).
This is according to the GST Council’s decision on 14th March where 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 and are undergoing the corporate insolvency resolution process, so as to enable them to comply with the provisions of GST Laws during the CIRP period.
According to the Notification, 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 IRP/RP.
The Notification also substituted the Registration part of Special Procedure and said 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.
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