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Interim Resolution Professionals Seek Clarity on Additional GST Registration

More GST Registrations for Interim Resolution Professional

IRPs stand for Interim resolution professionals which are managing various companies under the insolvency process, released a notification recently. In its IRP flagged several issues, requiring separate GST registration for such companies to file a totally new or fresh return from the time the insolvency proceedings began.

IRPs who are designated under the Insolvency and Bankruptcy Code (IBC) Know about insolvency and bankruptcy code Bill, 2020 (second amendment). Read features like the threshold of creditors, continuous supply of critical goods, liabilities of previous offenses and much more have reached the finance ministry, asking for the clarity on several aspects regarding the notification released on Saturday and a follow-up circular on Monday by Central Board of Indirect Taxes and Customs (CBIC) people who are familiar with the matter said.

They wanted to understand if the separate goods and service tax registration was mandatory for completing compliance of the company undergoing insolvency, or whether it is needed to be taken in all locations where it has premises.

As per source said, “They also want clarity on the category of registration, the mechanism of invoicing and transition of input tax credit balance between the corporate debtor and the IRP”. said.

One another source further added on the condition of anonymity that, “Clarity on the process of surrendering the GST registration In an notification shared by the Central Board of Indirect Taxes and Customs (CBIC) the government has made it mandatory for all partnership firms. Read More post completion of resolution plan has also been sought,” The source further added that, “some representations have been sent to the finance ministry. Since the notification treats an IRP as a distinct person from the corporate debtor, some IRPs wanted to know whether any taxable supply transaction between such distinct persons was considered free of cost”.

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