1. New Requirement under Central Goods and Services Tax Act, 2017 for IRP/RP of Corporate Debtor.
The Ministry of Finance vide its Notification No. 11/2020 – Central Tax dated 21.03.2020 stated that those Registered persons who are undergoing the corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016, and the management of such Companies whose affairs are being undertaken by interim resolution professionals ("IRP") or resolution professionals ("RP") should follow a special procedure, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process. The notification offers special provisions w.r.t Registration, Return, and Input Tax Credit.
2. NCLT makes Default Record from an Information Utility mandatory for both Fresh and pending applications under Section 7 Of the I& B Code.
The National Company Law Tribunal vide its order dated 12th May 2020 directed that any new insolvency petitions filed by the financial creditor under section 7 of the I&B Code 2016 must be accompanied by a default record from an Information Utility failing which no petitions will be entertained.
Further, it clarified that this order is not only applicable for fresh filing but also all the insolvency applications pending for admission.
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