On 6th of May 2020, CBIC has issued Circular No 138/08/2020-GST clarifying certain challenges being faced by the Registered Persons in implementation of GST Laws in the wake of outbreak of Covid-19. The Circular clarifies issues related to The Insolvency and Bankruptcy Code, 2016, Merchant Exports and Job Work Return in Form GST ITC – 04 for Quarter ending March’ 2020.
Below are the summary of clarifications issued by the Board –
| S. No | Category | Issue | Clarification |
| 1 | Merchant Exports | Benefit of 0.1% rate (Notification no. 40/2017- Central Tax (Rate) dated 23.10.2017) is allowed to Supplier, if the Merchant Exporters exports the goods within 90 days from the date of issue of Tax Invoice by Registered Suppliers. Clarification is sought vide Notf. 35/2020-CT dated 03.04.2020 which relaxed the time limit for compliance which falls during 20th March 20 to 29th June 20 was extended to 30th June 20. | 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. |
| 2 | Return for Job Work | Return for Job Work in Form GST ITC-04 in respect of goods dispatched to a job worker or received from a job worker for the quarter ending March, 2020 falls on 25th April, 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 | The due date of furnishing of FORM GST ITC-04 for the quarter ending March, 2020 stands extended up to 30th June, 2020. |
| 3 | Insolvency and Bankruptcy Code, 2016 | Notification No. 11/2020 – Central Tax dated 21.03.2020, 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. | IRP/RP shall now be required to obtain GST registration within thirty days of the appointment of the IRP/RP or by 30th June, 2020, whichever is later |
| 4 | 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 Corporate Debtor is complying with all the provisions of the GST Law (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 | IRP/RP would NOT be required to obtain a fresh GST registration in those cases where statements in FORM GSTR-1 and GSTR 3B, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN) | |
| 5 | 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.
(ii) The new registration by IRP/RP shall be required only once. In case of any change in IRP/RP after initial appointment under IBC, it would be deemed to be change of authorized signatory. Same may 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 and authorized signatory of the Company can add IRP /RP as new authorized signatory |
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