The Central Goods and Services Tax Act, 2017 (‘CGST Act’) contains no special provision(s) in respect of Corporate Debtors (‘CDs’) undergoing Corporate Insolvency Resolution Process (‘CIRP’) under the Insolvency and Bankruptcy Code, 2016 (‘IBC’).

In the absence of the same, Insolvency Resolution Professionals (‘IRPs’) / Resolution Professionals (‘RPs’) had struggles carrying-out the GST compliances for CDs for the CIRP period. In several instances, CDs approached Courts to seek a specific mechanism to carry-out the GST compliances.

To set right the same, Ministry of Finance introduced a Notification No. 11/2020 – Central Tax, dated March 21, 2020 (Notification), followed by a Circular No.134/04/2020 – GST, dated March 23, 2020 (clarifying several aspects of the Notification).

Vide the Notification, the Government has laid down a special procedure for the CDs under the CIRP. Introduced with a noble cause and to lay down a clear path for CDs, the Notification opens-up a pandora box for CDs under CIRP and leaves several key issues unaddressed.

In this context, we are happy to share our podcast on the Notification, as presented by our Director, Kulraj Ashpnani available at https://youtu.be/AnWXytzheCg. In this podcast, Kulraj has cogently explains the underlying background of the issue, special procedures so introduced and the unaddressed issues. The presentation used in the video is also appended to this mail for your ready reference.

NITYA’s Take I Special Procedure for Corporate Debtors undergoing Corporate Insolvency Resolution Process