When the GST liability is more than input tax credit at that time while filing GST return we are required to make GST payment. Here we will understand how to make GST payment online and when we are required to make it. You can also make GST payment without any liability same will be credited to cash ledger in GST (Kind of GST wallet).
In this article we will understand implication of GST on corporate debtors under IBC. When entity defaults certain threshold amount then CIRP (Corporate Insolvency Resolution Process) is initiated. Here we will understand, when new GST registration is required, how we can avail GST input credit and how we can claim refund of GST paid.
Special procedure shall follow by the Special Class of Person:
- Notification No. 11/2020 [Central tax] dated 21/03/2020 is issued prescribing the special procedure for corporate debtors under the provision of Insolvency and Bankruptcy Code (IBC) Code, 2016.
- As per the provisions of IBC, once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process (hereafter referred to as “CIRP”) gets triggered.
- After undergoing the corporate insolvency resolution process, the management of that default corporate debtor is undertaken by IRP / RP. (IRP = Interim resolution professional and RP = Resolution professional)
- “Corporate debtors” under IBC are now special class of person shall follow the following special procedure from the date of appointment of IRP / RP till the corporate insolvency resolution process is over and order passed by NCLT (National Company Law Tribunal).
What is liquidated damages (LD)?
Liquidated Damages (LD) is levied or imposed when some specific task or work is not performed as per the agreed terms or condition, means that there is breach of contract terms. LD is generally levied at fixed rated irrespective of actual damages. Generally in large quantum work like infrastructure projects where performance of the contract is very essence of project, then there is specific clause for LD in the contract. Example situation in which LD is levied is like when milestone is not performed within specific time frame then LD is levied at 1% of milestone amount. We will not understand applicability of GST on liquidated damages.