CBIC Clarifications on GST Laws
· Insolvency
and Bankruptcy Code, 2016
· IRP/RP shall now be required to obtain registration
within thirty days of the appointment of the IRP/RP
or by 30th June, 2020,
whichever is later.
· Special procedure to overcome the
requirement
of sequential filing of FORM
GSTR-3B under GST and to align it with
the provisions of the IBC Act, 2016.
· IRP/RP would not be required to take a fresh registration in those cases
where statements
in FORM GSTR-1 under section 37 and
returns in FORM GSTR-3B under section
39 of
the CGST Act, for all the tax periods prior to the appointment
of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN).
·
New registration
by IRP/RP shall be required
only
once
· It is clarified that such a
change would need only change of authorized
signatory which can be done
by the authorized
signatory of the Company
who
can add IRP /RP as new
authorized signatory or failing that it can be added by the concerned jurisdictional
officer on
request by IRP/RP.
· Registered recipient (merchant exporter) at 0.1%
provided, inter-alia,
that
the merchant
exporter exports the goods
within a period of ninety days from the date of issue of a tax invoice
by the registered supplier. Request has
been made to clarify
the provision vis-à-vis the exemption provided vide
notification no. 35/2020-Central
Tax dated 03.04.2020.
· Requirement of exporting the goods
by the merchant
exporter within 90 days from the date of issue of tax invoice by the registered
supplier gets extended
to
30th June, 2020, provided the completion
of such 90 days
period
falls
within 20.03.2020 to 29.06.2020.
· GST ITC-04 (Job Worker) in respect of goods dispatched to a job worker or received
from a job worker during a quarter on or before
the 25th day of the
month
succeeding that quarter.
· Clarification has been sought as to
whether the extension of time limit as provided in terms of notification No.
35/2020-Central Tax dated
03.04.2020 also covers furnishing of FORM GST ITC-04 for quarter ending March, 2020.
· It is clarified that the due date
of furnishing of FORM GST ITC-04 for the
quarter ending March, 2020
stands extended up to 30.06.2020.
[CBIC Circular No. 138/08/2020-GST dated 6th
May 2020]
Subject:
Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws.
Circular No.136/06/2020-GST,
dated 03.04.2020 and Circular No.137/07/2020-GST, dated 13.04.2020 had been issued to clarify doubts regarding relief measures taken by the
Government for facilitating taxpayers in meeting the compliance requirements under various
provisions of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the “CGST Act”) on account of the measures taken to prevent the spread of Novel Corona Virus
(COVID-19). Post issuance of the said clarifications, certain challenges
being faced by taxpayers in adhering to the compliance
requirements under various other provisions of the
CGST Act were brought to the notice of the Board, and need to be clarified.
2. The issues raised have been examined and in order to ensure uniformity in the
implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies as under:
|
Sl. No. |
Issue |
Clarification |
|
Issues
related to Insolvency and Bankruptcy Code, 2016 |
||
|
1. |
Notification No. 11/2020 – Central Tax
dated 21.03.2020, issued under section 148 of the CGST
Act provided that an IRP / CIRP is
required to take a separate registration within 30 days of the issuance of the notification.
It has been represented
that the IRP/RP are facing difficulty
in obtaining
registrations during the period
of the lockdown
and have requested
to increase the time
for obtaining registration
from the present 30
days limit. |
Vide
notification No. 39/2020- Central Tax,
dated 05.05.2020, the time limit
required for
obtaining registration by the IRP/RP
in terms of special procedure prescribed vide notification No. 11/2020 – Central Tax dated
21.03.2020 has been extended. Accordingly,
IRP/RP shall now be required to
obtain registration within thirty days of the
appointment of the IRP/RP
or by 30th June, 2020,
whichever is later. |
|
2. |
The notification No.
11/2020–Central
Tax dated 21.03.2020 specifies that the IRP/RP, in respect
of a corporate
debtor, has to take
a new registration
with effect from the date of appointment.
Clarification
has been sought
whether IRP
would be required to take a fresh registration
even when they are
complying with all the provisions of the GST
Law under the registration of Corporate Debtor (earlier
GSTIN) i.e. all the GSTR-3Bs
have been filed by the Corporate debtor / IRP prior to the period of appointment
of IRPs and they have not
been defaulted in return filing. |
i. The
notification No. 11/2020– Central Tax
dated 21.03.2020 was issued to devise
a special procedure to overcome the
requirement
of sequential filing of FORM GSTR-3B under GST and to align it with the
provisions of the
IBC Act, 2016. The said notification has been amended vide
notification
No. 39/2020 - Central Tax,
dated 05.05.2020 so as to
specifically provide that corporate debtors who
have not defaulted in furnishing the return under GST
would not be required to obtain
a separate registration
with effect from the date of appointment of IRP/RP. ii. Accordingly, it
is clarified that IRP/RP would not be required to take a
fresh registration in those cases
where statements in FORM GSTR-1 under
section 37 and
returns in FORM GSTR-3B under section 39
of the CGST Act, for all the
tax periods prior to the appointment
of IRP/RP,
have been furnished under the registration
of Corporate Debtor (earlier GSTIN). |
|
3. |
Another doubt
has been raised that the
present notification
has used the terms IRP and RP interchangeably,
and in cases where
an appointed
IRP is not ratified
and a separate
RP is appointed, whether the same new GSTIN shall be transferred from the IRP to RP, or both will need to take fresh
registration. |
i.
In cases where the
RP
is not the
same as IRP, or in cases
where a different IRP/RP
is appointed midway during the insolvency process,
the change
in the GST system may
be carried out by an amendment in
the registration form.
Changing the authorized signatory is a non- core amendment and
does not require approval of tax officer. However, if the previous authorized
signatory does not share the credentials with
his successor, then the
newly appointed person
can
get his details added through the Jurisdictional authority as
Primary
authorized signatory. ii. The new registration
by IRP/RP shall be required
only once, and in case of any
change in IRP/RP after initial appointment under IBC, it would be deemed to be change of
authorized
signatory and it would not be considered
as a distinct person on every such change after initial appointment. Accordingly, it is clarified that such a change would need only change
of authorized
signatory which can be done by the authorized
signatory of the Company who can
add IRP /RP as new authorized
signatory or
failing that it can be added by
the concerned jurisdictional
officer on request by IRP/RP. |
|
Other COVID-19 related representations. |
||
|
4. |
As per notification
no. 40/2017- Central Tax (Rate) dated 23.10.2017, a registered supplier is
allowed to supply
the goods to a registered recipient (merchant exporter) at 0.1%
provided, inter-alia,
that
the merchant exporter exports the goods
within a period of ninety days from the date of issue of a tax invoice
by the registered supplier. Request
has been made to
clarify the
provision vis-à-vis the exemption provided vide notification
no. 35/2020-Central
Tax dated 03.04.2020. |
i.
Vide
notification
No. 35/2020-Central
Tax dated 03.04.2020, time limit for compliance
of any action by any person
which falls
during the
period from 20.03.2020 to 29.06.2020 has been extended up to 30.06.2020, where completion
or compliance
of such action has not been
made within such time. ii. Notification no. 40/2017-Central
Tax (Rate) dated 23.10.2017 was issued under
powers conferred by section 11 of the CGST
Act, 2017. The exemption
provided in
notification No. 35/2020-Central Tax dated 03.04.2020 is applicable for section 11 as
well. iii. Accordingly,
it
is clarified that the said requirement of exporting the goods by the merchant
exporter within 90 days from the date of issue of tax invoice by the registered
supplier gets extended
to
30th June, 2020, provided the completion
of such 90 days
period falls within
20.03.2020 to 29.06.2020. |
|
5. |
Sub-rule (3) of that rule 45 of CGST
Rules requires furnishing of FORM GST
ITC-04 in respect of goods dispatched to a job worker or received
from a job worker during a quarter on or
before the 25th day of the
month succeeding that quarter. Accordingly,
the due date of filing
of FORM GST
ITC-04 for the quarter ending March, 2020 falls on
25.04.2020. Clarification
has been sought
as to whether the extension of time
limit as provided in terms of notification No.
35/2020-Central Tax dated
03.04.2020 also covers furnishing of FORM GST ITC-04 for quarter ending March,
2020. |
Time limit for compliance of any action by any
person which falls
during the period
from 20.03.2020 to 29.06.2020 has been extended up to 30.06.2020 where completion or compliance of such action has not
been made within
such time. Accordingly,
it
is clarified that the due date of
furnishing of FORM GST ITC-04 for the
quarter ending March, 2020
stands extended up to 30.06.2020. |
4. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
5. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board.
[CBEC-20/06/04-2020-GST]