New GST Registration enables Functionality for Corporate Debtors

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In a crucial move that will assist the taxpayers who fall under the classification of Corporate Debtor as per the requirements under the Insolvency and Bankruptcy Code, a new registration functionality has been facilitated the on the Goods and Services Tax (GST) portal. In this article, we will discuss on GST Registration for Corporate Debtors.

GST Registration for Corporate Debtors

In March this year, the Goods and Services Tax Council had declared a special method for companies undergoing the Corporate Insolvency Resolution Process (CIRP). Under this resolution process, the management of affairs of the company would be attempted by interim resolution professionals (IRP) or resolution professionals (RP).

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As per the announcement issued by the GSTN, a corporate debtor would be treated as a distinct person with effect from the date of appointment of an IRP/RP. The corporate debtor would also be required to apply for new GST registration within 30 days of the appointment of an IRP/RP. This current GST registration would be for each state where the company was lately registered.

Benefits For Corporate Debtors

To facilitate faster and efficient registration under the Goods and Services Tax, the GST portal has introduced a provision while pertaining for GST registration online.

  • While applying for the GST Registration, a taxpayer is expected to select the reason for the application of GST registration.
  • The insolvency resolution specialist will be expected to select the option of “corporate debtor undergoing the corporate insolvency process by IRP/RP” in the drop-down menu while applying for a new GST registration on the GST portal.
  • Apart from applying for a new GST registration, corporate debtors will also be required to furnish GST returns, pay the output tax liability due and meet other GST compliance requirements as provisioned under GST law

Further Notification for corporate Debtors

Further, corporate debtors who have not been defaulted on in furnishing the return under GST would not be compelled to obtain a separate GST registration. Accordingly, if statements in form GSTR-1 and returns in form GSTR-3B for all the tax periods prior to the authorization of IRP/RP have been furnished under the registration of corporate debtor (earlier GSTIN), the IRP/RP would not be expected to take a fresh GST Registration.

In case, you need any kind of guidance related to the GST Return filing procedure, GST Registration, or any other GST compliance, please feel free to contact our business advisors at 8881-069-069.

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