One of the main reasons for delay in the Corporate Insolvency Resolution Process (CIRP) is, as highlighted previously, admission of cases. This is in turn is caused by inadequate information/documents provided by operational creditors (OCs) to establish the transaction and the default at the time of filing applications under Section 9 of the Code.
The amendment to the 2016 Regulations places a duty on operational creditors to furnish copies of GSTR-1 and GSTR-3B returns filed by them along with an e-way bill as additional documentary evidence.
GSTR-1 contains detailed information of all the outward goods and services of a business. It includes details of invoices, debit notes, credit notes etc, and is required to be filed by the supplier of goods/services every month or quarter.
GSTR-3B is filed by a registered GST dealer. It is a monthly self-declaration which is used to declare summary GST liabilities for a tax period. This return contains information relating to outward supplies of goods/services, amount of taxes paid etc.
Rule 138 of the CGST Rules, 2017 provides for the e-way bill mechanism. In the context of CIRP, this mechanism holds importance as it provides for furnishing of information prior to the commencement of the transaction and is issued in relation to supply or for reasons other than supply.
Thus, GSTR-1 and GSTR-3B filed by the OC along with e-way bill, wherever applicable, can serve as proof to establish that the supply of goods/services to the corporate debtor has actually happened ,and thus, can be used as evidence in establishing default.
Source: Barandbench
