CBIC provides special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016

Mar 31, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on March 23, 2020, provides special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

Therefore, such class of persons shall follow the following special procedure, from the date of the appointment of the interim resolution professionals (IRP) / resolution professionals (RP) till the period they undergo the corporate insolvency resolution process, as mentioned below:

 Registration: The above mentioned class of person will be treated as a distinct person of the corporate debtor, and will be liable to take a 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: 

Provided that in cases where the IRP/RP has been appointed prior to the date of this Notification, he will take registration within thirty days from the commencement of this Notification, with effect from date of his appointment as IRP/RP.

 Return: After obtaining registration, such class of person will file return from the date on which he becomes liable to registration till the date on which registration has been granted.

 Input Tax Credit

(1) The said class of persons shall, in his first return, be eligible to avail input tax credit on invoices covering the supplies of goods or services or both.

(2) Registered persons who are receiving supplies from the said class of persons shall, for the period from the date of appointment of IRP / RP till the date of registration as required in this notification or thirty days from the date of this notification, whichever is earlier, be eligible to avail input tax credit on invoices issued.

(3) 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 registration in terms of this notification shall be available for refund to the erstwhile registration.

[Notification No. 11/2020 – Central Tax]


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