ibc: Customs, GST wings asked to be proactive in IBC cases – Times of India
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NEW DELHI: The government and the Insolvency & Bankruptcy Board of India (IBBI) have worked out a mechanism to share data on companies facing insolvency action as the customs and GST wings repeatedly miss the deadline for filing claims, resulting in prolonged litigation.
Like suppliers to companies, customs and GST authorities can file claims as operational creditors for the tax dues from the companies. But the claims have to be filed within 90 days of commencement of insolvency action.
In a communication to top officials, the Central Board of Indirect Taxes and Customs (CBIC) has said that there is inordinate delay in filing claims, resulting in claims not being admitted and extinguished once resolution is done.
Now, CBIC has decided to designate a nodal officer for sharing information received from IBBI with the other officers in the indirect tax wing of the revenue department. The CBIC officials have been asked to create a WhatsApp group for the purpose so that the data can be shared quickly with the field officers tasked with filing claims against companies based on the tax dues.
In addition, the officers have also been asked to get daily updates from IBBI on the new cases that are being taken up. Further, the tax authorities will now have to work with the resolution professional, who is appointed to oversee the process once the company is part of the insolvency process.
Besides, the CBIC has to be updated every month, the detailed instructions issued last week said. Since 2016, when the IBC kicked in, 5,258 companies have faced insolvency action, of which 3,406, which is around 65%, were closed at the end of March 2022. At the start of the financial year, over 1,800 cases were going on.
Like suppliers to companies, customs and GST authorities can file claims as operational creditors for the tax dues from the companies. But the claims have to be filed within 90 days of commencement of insolvency action.
In a communication to top officials, the Central Board of Indirect Taxes and Customs (CBIC) has said that there is inordinate delay in filing claims, resulting in claims not being admitted and extinguished once resolution is done.
Now, CBIC has decided to designate a nodal officer for sharing information received from IBBI with the other officers in the indirect tax wing of the revenue department. The CBIC officials have been asked to create a WhatsApp group for the purpose so that the data can be shared quickly with the field officers tasked with filing claims against companies based on the tax dues.
In addition, the officers have also been asked to get daily updates from IBBI on the new cases that are being taken up. Further, the tax authorities will now have to work with the resolution professional, who is appointed to oversee the process once the company is part of the insolvency process.
Besides, the CBIC has to be updated every month, the detailed instructions issued last week said. Since 2016, when the IBC kicked in, 5,258 companies have faced insolvency action, of which 3,406, which is around 65%, were closed at the end of March 2022. At the start of the financial year, over 1,800 cases were going on.
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