Notification No. 39/2020–Central Tax Dated 5th May, 2020 | Company under Insolvency

CBIC Vide Notification No. 39/2020–Central Tax Dated 5th May, 2020 has made following changes in Notification No. 11/2020 – Central Tax  Dated 21st March 2020

1. In the first paragraph, the following proviso shall be inserted, namely: –

“Provided that 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”

Impact of above is that corporate debtors who have filed statement under section 37 (i.e GSTR-1) and return under section 39 (i.e GSTR-3B) shall not be classified as said class of persons who has to follow special procedure. Therefore corporate debtors who have not defaulted in furnishing the return under GST would not be required to obtain a separate registration with effect from the date of appointment of IRP/RP.

Readers are advised to refer relevant article on same topic by clicking here

2. for the paragraph 2, with effect from the 21st March, 2020, the following paragraph shall
be substituted, namely:

“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”

Notification No. 39/2020–Central Tax Dated 5th May, 2020 | Company under Insolvency Share on X

Impact of above amendment is that time limit for taking new registration to be taken by corporate debtors has been relaxed, such registration can be taken within 30 days from date of appointment of IRP or 30th June whichever is later.

Click to Download Full Notification

(Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. I assume no responsibility therefore. In no event, we shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.)