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GSTN enables new registration functionality for insolvency resolution professionals

  • Jun 1, 2020 | Divita S Gupta

In a move that will provide relief to corporate debtors, the Goods and Services Tax Network announced the implementation of a special procedure under GST Law for those registered persons who fall under the category of Corporate Debtors under the Insolvency and Bankruptcy Code.This is a reference to the registration and availment of Input Tax Credit under Central Goods and Service Tax Act, 2017.

The GSTN has enabled a new registration functionality on the GST portal for registered entities who are currently corporate debtors under the provisions of the Insolvency and Bankruptcy Code (IBC). As per this facility, companies that are undergoing the corporate insolvency resolution process and whose management affairs are being undertaken by interim resolution professionals or resolution professionals will be required to choose the reason to obtain new registration in the drop-down menu as "corporate debtor undergoing the corporate insolvency resolution process by IRP/RP”.

As per the announcement issued by the Central Board for Indirect Taxes and Customs in March , corporate debtors shall be liable to obtain new registration through an IRP or RP. As such, IRP/RPs can apply for a new registration on behalf of corporate debtors within 30 days from their appointment or by June 1, 2020, whichever is later.

Corporate debtors will be treated as distinct persons under GST law and will be required to take up a new registration through IRP/RP from the date of appointment of an IRP/RP to manage the affairs of the corporate debtor. Additionally, corporate debtors who have not defaulted in furnishing returns under the Goods and Services Tax will not be required to obtain a separate registration. 


Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.