Important Keyword: Notification No. 11/2020 – Central Tax, GST CIRP rules, GST for corporate debtors, IRP RP GST procedure, Section 40 CGST Act, GST new registration for insolvency, GST refund for CIRP, GST special procedure insolvency,
Words: 1097; Read time: 6 minutes.
Table of Contents
[F.No.20/06/03/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 21st March, 2020
Notification No. 11/2020 – Central Tax: Seeks to provide special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.
GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R.....(E).–In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Government, on the recommendations of the Council,
Hereby notifies those registered persons(hereinafter referred to as the erstwhile registered person), who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow the following special procedure, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process, as mentioned below.
2. Registration. - The said class of persons shall, with effect from the date of appointment of IRP / RP, be treated as a distinct person of the corporate debtor, and shall be liable to take a new registration (hereinafter referred to as the new registration)in each of the States or Union territories where the corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP:
Provided that in cases where the IRP/RP has been appointed prior to the date of this notification, he shall take registration within thirty days from the commencement of this notification, with effect from date of his appointment as IRP/RP.
3. Return. - The said class of persons shall, after obtaining registration file the first return under section 40 of the said Act, from the date on which he becomes liable to registration till the date on which registration has been granted.
4. Input tax credit. -
- The said class of persons shall, in his first return, be eligible to avail input tax credit on invoices covering the supplies of goods or services or both, received since his appointment as IRP/RP but bearing the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-section (4) of section 16 of the said Act and sub-rule (4) of rule 36 of the Central Goods and Service Tax Rules, 2017 (hereinafter referred to as the said rules).
- Registered persons who are receiving supplies from the said class of persons shall, for the period from the date of appointment of IRP / RP till the date of registration as required in this notification or thirty days from the date of this notification, whichever is earlier, be eligible to avail input tax credit on invoices issued using the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-rule (4) of rule 36 of the said rules.
5. Any amount deposited in the cash ledger by the IRP/RP, in the existing registration, from the date of appointment of IRP/RP to the date of registration in terms of this notification shall be available for refund to the erstwhile registration.
Explanation. - For the purposes of this notification, the terms “corporate debtor”, “corporate insolvency resolution professional”, “interim resolution professional” and “resolution professional” shall have the same meaning as assigned to them in the Insolvency and Bankruptcy Code, 2016 (31 of 2016).
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 11/2020 – Central Tax
Q1: What is the main purpose of Notification No. 11/2020 – Central Tax?
Answer:
The notification provides a special GST procedure for corporate debtors undergoing CIRP under IBC. Once an IRP/RP is appointed, the company must follow a different GST procedure, including fresh registration, special return filing, and special ITC rules.
Need compliance help? Try Finodha GST Compliance Services 👉 https://finodha.in/gst-compliance/
Q2: Who is considered a ‘corporate debtor’ under this notification?
Answer:
A corporate debtor is any company undergoing CIRP under the Insolvency and Bankruptcy Code, 2016, whose management has been handed over to an IRP/RP. The notification applies only when IRP/RP is managing operations.
Q3: Is a new GST registration mandatory for corporate debtors under CIRP?
Answer:
Yes.
The IRP/RP must take a new GST registration in every State/UT where the company was earlier registered. This must be done within 30 days of IRP/RP appointment.
Need help with new GST registration? 👉 https://finodha.in/online-gst-registration/
Q4: Why is a new GST registration required?
Answer:
Because once CIRP begins, the company is treated as a distinct person separate from its earlier registration. This helps avoid mixing earlier liabilities with new operations managed by IRP/RP.
Q5: What if IRP/RP was appointed before this notification?
Answer:
They must apply for a new GST registration within 30 days from the date of the notification.
Q6: What is the first return required to be filed?
Answer:
The first return must be filed under Section 40 of the CGST Act, covering the period:
➡️ From the date the company becomes liable for registration
➡️ Till the date when the new GST registration is granted
For easy filing, use Finodha's GST Return Filing service 👉 https://finodha.in/gst-return-filing/
Q7: Can ITC be claimed on invoices issued with the old GSTIN?
Answer:
Yes.
IRP/RP can claim input tax credit on invoices issued to the erstwhile GSTIN for supplies received after the date of IRP/RP appointment, except:
Section 16(4) time limit
Rule 36(4) restrictions
This is a huge relief as vendors may still continue issuing invoices on the older GSTIN during the transition.
Q8: Can suppliers claim ITC on supplies made to the corporate debtor during this period?
Answer:
Yes.
Suppliers issuing invoices using the corporate debtor’s old GSTIN can claim ITC for supplies made during the interim period (before the new GST registration is obtained).
Conditions of Chapter V of the CGST Act will apply.
Q9: What happens to the cash deposited in the old GST registration?
Answer:
Any amount deposited into the cash ledger after IRP/RP appointment but before new registration can be claimed as refund in the old registration.
Finodha can help file refund claims 👉 https://finodha.in/gst-compliance/
Q10: Which GST forms are involved under this notification?
Answer:
FORM GST REG-01 → For new registration
FORM GSTR-3B → For monthly tax payment
FORM GSTR-1 → For outward supplies
Refund form → For cash ledger refund
Q11: What if the IRP/RP does not take new registration within 30 days?
Answer:
They may face:
❌ Penalties under GST
❌ Blocking of ITC
❌ Issues in return filing
❌ Supplier ITC denial
Q12: Does this notification apply to all companies under insolvency?
Answer:
Yes, it applies to every corporate debtor undergoing CIRP where an IRP/RP is appointed.
Q13: What about companies with multiple GSTINs across states?
Answer:
Separate new registrations must be taken in every state/UT where the old registration existed.
Q14: Is dynamic QR code or e-invoicing affected by this notification?
Answer:
No. This notification deals only with special GST procedures for corporate debtors, not invoicing or QR codes.
Q15: Can the new GST registration continue after CIRP ends?
Answer:
Yes, but the company may choose to:
Continue the new GSTIN, or
Apply for cancellation and revert to old operations, depending on resolution plan outcomes.
For guidance, consult a GST expert at Finodha 👉 https://finodha.in/gst-compliance/
Conclusion
Notification No. 11/2020 – Central Tax creates a transparent GST system for companies undergoing insolvency resolution by ensuring proper separation of liabilities between the company and the IRP/RP-managed phase.
If you’re an IRP, RP, or a business supplying to a company under CIRP, staying compliant is crucial.
👉 Need help with GST registration, return filing, ITC claims, or refunds?
Consult Finodha GST Experts today!
https://finodha.in/gst-compliance/
Download PDF: Notification No. 11/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
