Seeks to make amendments to special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

The Central Government makes an amendment to the special procedure for Corporate Debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. A proviso is inserted under notification 11/2020 which means that taking of new registration will not be applicable to those corporate debtors who have already filed all the returns prior to appointment of IRP/PR.

To understand the same, please refer to our earlier update on notification 11/2020. This notification came after Delhi High Court verdict wherein it is held that company applying for corporate insolvency should be allowed to file all the returns after applying for the same. The earlier period returns should not be insisted upon. But it was not possible in the same registration number. Hence a new registration was allowed to them.

But now a situation comes where a company who has opted for this scheme has filed all the returns. Then there is no need to take a separate registration. It was also provided in earlier clarification that even if IRP/RP has made deposit in cash ledger then refund should be applied by them. Then we have also raised this objection in context of refund, in our update that if retruns are already filed then how he will claim refund. Also, whether the assessee will have to file these returns twice? The relevant extract of update is as under:-

Issue-Some of the IRP/RPs has made deposit in the cash ledger of erstwhile registration of the corporate debtor. How to claim refund for amount deposited in the cash ledger by the IRP/RP?

Clarification- Any amount deposited in the cash ledger by the IRP/RP, in the existing registration, from the date of appointment of IRP / RP to the date of notification No.11/2020 specifying the special procedure for corporate debtors undergoing CIRP, shall be available for refund to the erstwhile registration under the head refund of cash ledger, even if the relevant FORM GSTR-3B/GSTR-1are not filed for the said period.
Now, if the IRP/RP has filed the return for this period and this cash is adjusted then how the refund will come. Moreover, IRP/RP has to file again returns as per provision of notification as well as circular then whether the payment will be made twice? There is no clarification on this issue. It only says that they have to file return.
Hence, now it is clarified that there is no need of separate registration for such assessee who have already filed the returns.

Further, the second amendment in notification number 11/2020 is being done that they can take registration within 30 days or by 30/06/2020, whichever is later. It is being done due to current lockdown situation. But it is interesting to note that there is no relaxation of registration provisions under notification 35/2020 but the relaxation is given to IRP/RP in this scheme from registration till 30/06/2020.

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Notification No. 39/2020- Central Tax ,dt. 05-05-2020

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