{"id":30117,"date":"2020-03-31T18:38:52","date_gmt":"2020-03-31T13:08:52","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=30117"},"modified":"2021-02-19T11:23:27","modified_gmt":"2021-02-19T05:53:27","slug":"compliance-to-be-followed-by-resolution-professional-under-gst","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/compliance-to-be-followed-by-resolution-professional-under-gst\/","title":{"rendered":"Compliance to be followed by Resolution Professional Under GST: A Complete Outline"},"content":{"rendered":"

According to  Insolvency and Bankruptcy Code (IBC), 2016<\/strong>, once a business defaults certain threshold amount, Corporate Insolvency Resolution Process or CIRP gets triggered and the management of such entity which is done by Corporate Debtor and its assets vest with an interim resolution professional or IRP or resolution professional RP. Resolution Professional<\/mark> under GST<\/mark> continues to run the business and operations of the said organisation as a going concern till the insolvency proceeding is over and an order is passed by the National Company Law Tribunal or NCLT<\/strong>[1]<\/strong><\/a><\/sup>. <\/p>\n\n\n\n

Notification No.11\/2020- Central Tax, dated 21.03.2020<\/em><\/strong> has been issued by the Government prescribing a special procedure under section 148 of the Central Goods and Services Tax Act, 2017 (CGST Act)<\/em><\/strong> for the corporate debtors who are undergoing CIRP under the provisions of IBC and the management of whose affairs are being undertaken by Insolvency Resolution Professional or Resolution Professionals under GST.<\/p>\n\n\n\n

The\ncorporate debtor undergoing Corporate Insolvency Resolution Process (CIRP) undergoing\nCIRP and the management whose affairs are being done by IRP or RP shall follow\na special procedure from the date of appointment of the IRP or RP till they\nundergo the CIRP. Compliance is to be followed by resolution professional under\nGST as prescribed in the CGST Act. <\/p>\n\n\n\n

What are the Key Changes Made in this Notification for Resolution\nProfessional Under GST?<\/h2>\n\n\n\n
\"Resolution<\/figure><\/div>\n\n\n\n

New registration within 30 days<\/h3>\n\n\n\n

The corporate debtors undergoing CIRP shall, with effect from the date of appointment of IRP \/ RP must be treated as a distinct person. The corporate debtor shall be liable to take a 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. The resolution professional under GST will undertake powers from the corporate debtor, and then the corporate debtor needs to get a new registration done. <\/p>\n\n\n\n

For Ongoing CIRPs<\/h3>\n\n\n\n

In cases where the IRP\/RP has been appointed before the date of this notification, he shall take registration within thirty days from the commencement of this notification, with effect from the date of his appointment as IRP\/RP. The resolution professional under GST will have to get the registration done within 30 days.<\/p>\n\n\n\n

GST registration of corporate debtor<\/h3>\n\n\n\n

Central\nBoard of Excise and Customs (CBEC) has clarified that the GST registration of\nan organisation for which CIRP has been initiated should not be cancelled under\nthe provisions of section 29 of the CGST Act, 2017.<\/p>\n\n\n\n

The proper officer can suspend the registration. In case the GST registration of an entity undergoing CIRP has already been cancelled, and it comes 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.<\/p>\n\n\n\n

 Return<\/h3>\n\n\n\n

The\nResolution professionals under GST shall, after obtaining registration, file\nthe first return under section 40 of the said Act – from the date on which he\nbecomes liable to registration till the date on which registration has been\ngranted.<\/p>\n\n\n\n

Also, Read:<\/b> Types of GST Returns and Their Due Dates<\/a><\/mark>.<\/p>\n\n\n\n

Resolution Professionals under GST liable to file returns of pre-CIRP\nperiod<\/h3>\n\n\n\n

The resolution professionals under GST, as per the provisions of IBC, 2016, the IRP\/RP is under an obligation to comply with all legal requirements for a period after the Insolvency Commencement Date. Hence, CBEC has issued a clarification that IRP or RP are not under an obligation to file returns of the pre-CIRP period.<\/p>\n\n\n\n

Process of filing First Return after obtaining a new registration<\/h3>\n\n\n\n

The Resolution Professional under GST will be liable to DO the following duties:<\/p>\n\n\n\n