Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws

Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws

Circular No. 138/08/2020-GST

CBEC-20/06/04-2020 -GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, dated the 06th May, 2020

To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)

Madam/Sir,
Subject: Clarification in respect of certain challenges faced by the registered persons in
implementation of provisions of GST Laws-reg.


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.

  1. 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:

Issues related to Insolvency and Bankruptcy Code, 2016

Sl.no Issue Clarification
1Notification 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.
2The 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).
3Another 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.

  1. It is requested that suitable trade notices may be issued to publicize the contents of this
    circular.
  2. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Yogendra Garg)
Principal Commissioner
y.garg@nic.in


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