Circular No. 138/08/2020-GST [C10-4T8]

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 Vide notification No. 39/2020- Central Tax, Tax dated 21.03.2020, issued under dated 05.05.2020, the time limit required for section 148 of the CGST Act obtaining registration by the IRP/RP in terms provided that an IRP / CIRP is of special procedure prescribed vide required to take a separate registration notification No. 11/2020 – Central Tax dated

Circular No. 138/08/2020-GST

within 30 days of the issuance of the 21.03.2020 has been extended. Accordingly, notification. It has been represented IRP/RP shall now be required to obtain that the IRP/RP are facing difficulty registration within thirty days of the in obtaining registrations during appointment of the IRP/RP or by 30th the period of the lockdown and June, 2020, whichever is later. have requested to increase the time for obtaining registration from the present 30 days limit.

2. The notification No. 11/2020– i. The notification No. 11/2020– Central Tax Central Tax dated 21.03.2020 dated 21.03.2020 was issued to devise a specifies that the IRP/RP, in respect special procedure to overcome the of a corporate debtor, has to take a requirement of sequential filing of FORM new registration with effect from the GSTR-3B under GST and to align it with date of appointment. Clarification the provisions of the IBC Act, 2016. The has been sought whether IRP said notification has been amended vide would be required to take a fresh notification No. 39/2020 - Central Tax, registration even when they are dated 05.05.2020 so as to specifically complying with all the provisions of provide that corporate debtors who have not the GST Law under the defaulted in furnishing the return under GST registration of Corporate Debtor would not be required to obtain a separate (earlier GSTIN) i.e. all the GSTR-3Bs registration with effect from the date of have been filed by the Corporate appointment of IRP/RP. debtor / IRP prior to the period of ii. Accordingly, it is clarified that IRP/RP appointment of IRPs and they have would not be required to take a fresh not been defaulted in return filing. 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 i. In cases where the RP is not the same as present notification has used the IRP, or in cases where a different IRP/RP is terms IRP and RP interchangeably, appointed midway during the insolvency and in cases where an appointed process, the change in the GST system may IRP is not ratified and a separate be carried out by an amendment in the RP is appointed, whether the same registration form. Changing the authorized new GSTIN shall be transferred signatory is a non- core amendment and from the IRP to RP, or both will does not require approval of tax officer. need to take fresh registration. 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

Circular No. 138/08/2020-GST

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- i. Vide notification No. 35/2020-Central Central Tax (Rate) dated 23.10.2017, Tax dated 03.04.2020, time limit for a registered supplier is allowed to compliance of any action by any person supply the goods to a registered which falls during the period from recipient (merchant exporter) at 0.1%20.03.2020 to 29.06.2020 has been extended provided, inter-alia, that the up to 30.06.2020, where completion or merchant exporter exports the goods compliance of such action has not been within a period of ninety days from made within such time. the date of issue of a tax invoice byii. Notification no. 40/2017-Central Tax the registered supplier. Request has (Rate) dated 23.10.2017 was issued under been made to clarify the provision powers conferred by section 11 of the CGST vis-à-vis the exemption provided videAct, 2017. The exemption provided in notification no. 35/2020-Central Tax notification No. 35/2020-Central Tax dated dated 03.04.2020. 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 Time limit for compliance of any action by Rules requires furnishing of FORM any person which falls during the period

Circular No. 138/08/2020-GST

GST ITC-04 in respect of goods from 20.03.2020 to 29.06.2020 has been dispatched to a job worker or received extended up to 30.06.2020 where from a job worker during a quarter on completion or compliance of such action has or before the 25th day of the month not been made within such time. succeeding that quarter. Accordingly, Accordingly, it is clarified that the due date the due date of filing of FORM GST of furnishing of FORM GST ITC-04 for the ITC-04 for the quarter ending March, quarter ending March, 2020 stands extended 2020 falls on 25.04.2020. up to 30.06.2020. 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

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. Hindi version would follow.