The Central Board of Indirect Taxes & Customs (“CBIC”) vide Notification No. 11/2020 – Central Tax dated March 21, 2020 has notified those registered persons (“the erstwhile registered person”), who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”), 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 said class of registered persons who shall follow special procedures from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process as mentioned below.
Registration – Such 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 (“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:
Provided that in cases where the IRP/RP has been appointed prior to the date of this notification, he shall take registration within thirty days from the commencement of this notification, with effect from date of his appointment as IRP/RP.
Return – The said class of persons shall, after obtaining registration file the first return under
section 40 of the Central Goods and Services Tax Act, 2017 (“CGST Act”), from the date on which he becomes liable to registration till the date on which registration has been granted.
Input Tax Credit – The said class of persons shall, in his first return, be eligible to avail ITC on invoices covering the supplies of goods or services or both, received since his appointment as IRP/RP but bearing the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the CGST Act and the rules made thereunder, except the provisions of Section 16(4) and Rule 36(4) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules”).
Registered persons 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 registered person, subject to the conditions of Chapter V of the CGST Act and the rules made thereunder, except the provisions of Rule 36(4) of the CGST Rules.
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 – The terms ‘corporate debtor’, ‘corporate insolvency resolution professional’, ‘interim resolution professional’ and ‘resolution professional’ shall have the same meaning as assigned to them in the IBC.