Our publication

Impact of GST on companies under IBC

Government of India has announced several relief measures in light of the coronavirus pandemic, which has affected businesses and economies around the world. To bring relief to companies/LLPs, the default threshold limit for an entity under the Insolvency and Bankruptcy Code (IBC) has been revised to INR 1 crore from INR 1 lakh.

To overcome and streamline the compliances under goods and services tax (GST), the government has prescribed special procedures under the Goods and Services Tax Law for the corporate debtors who are undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the IBC and the management of whose affairs is being undertaken by an interim resolution professional or resolution professional. 

This publication explains some of those clarifications and challenges, faced by corporate debtors and interim resolution professional or resolution professional, with our views in line with the procedures introduced by the Ministry of Finance for ensuring GST compliances of corporate debtors undergoing CIRP.