#Insolvency Resolution Professionals/ Resolution Professionals (IRPs/RPs), appointed to undertake #corporate insolvency resolution proceedings for Corporate Debtors, in terms of Notification. No 11/2020-CT, dated 21st March, 2020 can apply for new registration on GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the corporate debtor was registered earlier, within thirty days of their appointment as IRP/RP.
They should select the Reason for Registration as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process with IRP/RP” from the drop down menu.
The date of commencement of business for IRP/RPs will be the date of their appointment. Their compliance liabilities will also come into effect from the date of their appointment.
The person appointed as IRP/RP shall be the Primary Authorized Signatory for the newly registered Company.
In the Principal Place of business/ Additional place of business, the details as specified in original registration of the #Corporate #Debtors, is required to be entered.
The new registration application shall be submitted electronically on #GST Portal under DSC of the IRP/RP
The new registration by IRP/RP will be required only once. In case of a change in IRP/RP, after initial appointment, it would be deemed to be change of authorized signatory and not an appointment of a distinct person requiring a fresh registration.
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 a non- core amendment in the registration form.
The change in Primary Authorized Signatory details on the portal can be done either by the authorised signatory of the Company or by the
The #GST Tax payer should pay the supplier the value of the goods or services along with the tax within 180 days from the date of issue of invoice,Failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest
However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed.
Analysis of Notifications/Sections related to the Reversal of Input Tax Credit related to above mentioned
i. Section 16 (2)(D) of #CGST Act CHAPTER V- INPUT TAX CREDIT- Eligibility and conditions for taking input tax credit.
ii. Rule 37- Reversal of input tax credit in the case of non-payment of consideration- CHAPTER V- INPUT TAX CREDIT.
iii. Notification No. 13/2017 – Central Tax dated 28th June, 2017 applicable w.e.f. 1st July 2017 notified rate of interest as Eighteen Per Cent (18%) for Sub-section (1) of section 50.
A taxpayer can avail ITC even without making payment for goods / services to the supplier (provided supplier has paid the GST component to the Government and other criteria to avail #ITC are full-filled). However the payment must be made within 180 days from invoice date.
In case the payment is not made within 180 days, the ITC will be reversed and will become payable along with interest. The Rule requires the same shall be added to the output tax liability for the purpose of credit reversal. It is to noted that Reversal of ITC is not applicable to Invoices issued before 01st July 2017 i.e GST Implementation date, respective state VAT laws applicable for invoices raised before 01st July 2017.
Exception to this rule:-
Reversal of Input Tax credit in the case of non-payment of Consideration is not applicable when transaction done between related Parties, Inter Division or Unit. (Refer Rule 37-#CGST Rules ,2017,PART A AND SCHEDULE I of CGST Act )
The rule also provides such reversed amount is available for re-credit once the payment for the supplies is made.(i.e no time limit to reavail the credit reversed)
If the registered person avails credit on accrual basis and does not pay the invoice value to his supplier of goods or services or both within 180 days from the date of issue of the invoice, he would be required add the ineligible credit so availed, as his output tax liability in Form GSTR-2 in the month immediately succeeding the six-month period along with the interest thereof.
It is advised that since GSTR 2 has been discontinued till the Government notifies the same again, show the reversal amount in GSTR 3B i.e in the montly return.
Mr.A(registered person) purchased goods from Mr.B on credit worth Rs.1000/- on 15th July 2017 and assuming the tax rate on such goods to be 18% ,
the CGST and SGST amount comes out to be Rs. 90/- each and the total invoice value is Rs.1180/-.
Now according to second proviso to subsection (2) of section 16 , Mr.A must pay the invoice value to Mr.B within 180 days from the date of invoice i.e. maximum by 11th Jan 2018 or else the credit availed earlier shall be reversed along with interest till the payment is not made.
Now Rule 37 of the Central Goods and Services Tax (CGST) Rules, 2017 explains that the interest at the rate of 18% is to levied on Rs.180/- from the date of availing of credit of Rs.180/- in GSTR-2 /GSTR 3B for the m/o July’2017 till such the input tax reversal is added to the output tax liability for the m/o January’2018.
It is to be noted that Since GSTR-2 has been discontinued till the Government notifies it again, so availing the credit in GSTR 3B i.e Monthly return shall be considered instead of GSTR-2
Practical Implication of this GST provision
Details of credit reversal are to be given in GSTR 3B itself . If we go through return formats there is no provision for linking payment with invoices. Hence, it is not possible to track non- compliance of this aspect automatically.
It is the responsibility of the assessee to be compliant with all provisions of the law. He will have to maintain appropriate records in order to ensure that payment is done on time and there is no reversal of credit.
Accounting of Credit, reversal & Re availing the Credit
(i) While Accounting the service invoice
Service Expense A/C — Dr CGST A/C – Dr SGST A/C – Dr OR IGST A/C – Dr To Sundry Creditors
(ii) While making payment to the Suppliers Sundry Creditors—- Dr To Bank
(iii) If payment to the supplier not made within 180 days CGST reconciliation A/c—- Dr SGST reconciliation A/C— Dr To CGST A/C To SGST A/C OR IGST reconciliation A/C— Dr To IGST A/C
(iv) Re-avail the credit after making payment to supplier CGST A/C – Dr SGST A/C –Dr To CGST reconciliation A/c To SGST reconciliation A/C OR IGST A/C – Dr To IGST reconciliation A/C
There may be situations when you have made the Invoice ,E way Bill & your Stock is ready to be dispatched or have been already dispatched but is returned for any reasons.
Now what happens, you cancel the Invoice but you forgot to cancel the Eway Bill Generated.E way Bill can be cancelled within 24 Hours of Generation. If you dont cancel the E way Bill within 24 Hours , Eway Bill cannot be cancelled.
You may get the Notice from the GST Department for reasons as you have shown in the Eway Bill Site that you have sold materials but corresponding you have not shown in the GST Returns of respective month (as you have not actually sold).
NOW WHAT TO DO????
Here is the Possible Solution, You must give a Eway Bill Cancellation application, Eway Bill Copy and Cancelled InvoiceCopy in your respective Wards/Jurisdiction and take a Receipt of the same.
This Letter receiving will allow you to answer any notice issued in relation to this matter in future.You will be safe as you have already informed your Jurisdictional officer about this matter.
Might be in future Eway Bill Cancellation can be even done even after 24 Hours , but as of Now it is better to give an application before hand so that you dont get in unnessary Notice Demand Circus of the Tax Departments.
In case you want Word Format of the Application format , please mail us at firstname.lastname@example.org.We Will send you the Format.
In Case of any Clarification you can contact us on