Clarification in respect of issues under GST law for companies under Insolvency and Bankruptcy Code, 2016

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....after referred to as the "IBC"). 2. As per IBC, once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process (hereafter referred to as "CIRP") gets triggered and the management of such entity (Corporate Debtor) and its assets vest with an interim resolution professional (hereafter referred to as "IRP") or resolution professional (hereafter referred to as "RP"). It continues to run the business and operations of the said entity as a going concern till the insolvency proceeding is over and an order is passed by the National Company Law Tribunal (hereinafter referred to as the "NCLT") 3. To address the aforementioned problems, notification No. 439-F.T., dated 03.04.2020 has been issued by the Government presc....

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....ebtor be cancelled? It is clarified that the GST registration of an entity for which CIRP has been initiated should not be cancelled under the provisions of section 29 of the WBGST Act, 2017. The proper officer may, if need be, suspend the registration. In case the registration of an entity undergoing CIRP has already been cancelled and it is within the period of revocation of cancellation of registration, it is advised that such cancellation may be revoked by taking appropriate steps in this regard. 3. Is IRP/RP liable to file returns of pre-CIRP period?   No. In accordance with the provisions of IBC, 2016, the IRP/RP is under obligation to comply with all legal requirements for period after the Insolvency Commencement ....

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....nder section 148 of the WBGST Act has provided the manner of availment of ITC while furnishing the first return under section 40. 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, received since appointment as IRP/RP and during the CIRP period but bearing the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the WBGST Act and rule made thereunder, except the provisions of sub-section (4) of section 16 of the WBGST Act and sub-rule (4) of rule 36 of the WBGST Rules. In terms of the special procedure under section 148 of the WBGST Act issued vide notification No. 39-F.T., dated 03.04.2020. This excepti....