Page 31 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] CORPORATE DEBTOR UNDER GST — A NEW LIFELINE IN LIGHT OF GST LAWS J89
IRP/RP appointed after notification
(b) In such cases, IRP/RP shall take registration in each of the
States or Union territories where the corporate debtor was
registered earlier, within 30 days of the appointment of the
IRP/RP. However, as per the recent circular [C.B.I. & C. Cir-
cular No. 138/08/2020-GST, dated 6-5-2020 (Pt. No. 1)] the
time period for taking registration shall be extended to 30-6-
2020 or within 30 days of the appointment whichever is later.
IRP/RP appointed before notification
(c) In case where IRP has been already appointed prior to issue
of the above notification, the IRP shall obtain registration
within 30 days from the date of issue of the above-mentioned
notification. However, as per the recent circular [C.B.I. & C.
Circular No. 138/08/2020-GST, dated 6-5-2020 (Pt. No. 1)] the
time period for taking registration shall be extended to 30-6-
2020 or within 30 days of the appointment whichever is later.
Can the proper officer cancel GST registration of entities who are under
CIRP process for non-filing of GST returns?
(d) As per FAQs, it is clarified that the GST registration of an en-
tity for which CIRP has been initiated should not be can-
celled, in case of non-filing of returns, under the provisions of
Section 29 of the CGST Act, 2017. The proper officer may, if
need be, suspend the registration.
What happens in case where registration is already cancelled?
(e) In case the registration of an entity undergoing CIRP has al-
ready been cancelled and it is within the period of revocation
of cancellation of registration, it is advised that such cancella-
tion may be revoked by taking appropriate steps in this re-
gard. If the same is not within the period of revocation, then
an appeal may be filed against such cancellation order or any
other such direction which may be prescribed.
KSAA Analysis
(i) The circular clarifies that in case where registered person en-
ters CIRP, the erstwhile GSTIN shall be suspended and
where it is cancelled, the same be restored in accordance with
the law. However, as per CGST Act [Section 29 of the CGST
Act, 2017], GST Registration can be restored only on payment
of tax and filing of returns. On a conjoint reading of the pro-
vision along with the circular it is imperative that past re-
turns needs filing process to be complete so as to enable the
proper officer to activate GST registration.
(ii) Further, under IBC, IRP holds a temporary position until the
new RP is elected. Therefore, 30 days’ time limit under GST
Laws to apply for new registration seems practically unrea-
sonable. Further, the 30 days’ time after initiation of CIRP is
the time for the IRP to receive claims and call for meeting of
the creditors. The IRP is not firmly footed into the process, as
his own appointment is not yet ratified. In many cases, the
IRP is succeeded by a new RP. Therefore, whether IRP should
take registration or he should leave the same for the RP to do
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