Understanding the Electronic Reporting Framework & Late Fee Regimes under IBC
Timely electronic reporting is a core statutory pillar under the Insolvency and Bankruptcy Code, 2016 (IBC). To prevent opacity, reporting delays, and prolonged asset stagnation, the Insolvency and Bankruptcy Board of India (IBBI) has established twin electronic filing regimes with compounding monetary disincentives for delayed submissions.
Liquidation Forms (Regulation 47B)
Introduced vide Circular No. IBBI/LIQ/91/2026 (05.01.2026) and operationalized for fee collection vide Circular No. IBBI/LIQ/107/2026 (24.09.2026). Applies to Forms LIQ-1 to LIQ-4 due on or before 30.09.2026.
- • Base Fee: ₹500 per calendar month per form
- • GST: 18% (₹90 per month)
- • Total: ₹590 per month per form
- • Scope: Fresh delay & Updations / Corrections
CIRP Forms (Regulation 40B)
Governed by Regulation 40B of the CIRP Regulations read with Circular No. IBBI/CIRP/89/2025. Covers Form CIRP-1 through CIRP-7 and the biannual return in Form IP-1.
- • Base Fee: ₹500 per calendar month per form
- • GST: 18% (₹90 per month)
- • Total: ₹590 per month per form
- • Modification Utility: Fee charged if modified after due date
Applicability of 18% GST on IBBI Regulatory Levies
Prior to July 2022, statutory and regulatory authorities enjoyed exemptions under entry 22 of Notification No. 12/2017-Central Tax (Rate). However, following recommendations of the 47th GST Council meeting, the Ministry of Finance issued Notification No. 04/2022-Central Tax (Rate) effective 18th July 2022, withdrawing exemptions on services provided by the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Insolvency and Bankruptcy Board of India (IBBI).
Consequently, all regulatory levies, examination fees, registration fees, and delayed filing fees collected by IBBI attract Goods and Services Tax (GST) at 18% under Service Accounting Code (SAC) 9991 / 9983. For every ₹500 base delay fee, ₹90 in GST is collected, requiring a total electronic remittance of ₹590 per form per month.
Disciplinary Ramifications: The Authorisation for Assignment (AFA) Risk
Under the IBBI (Insolvency Professionals) Regulations, 2016, an Insolvency Professional (IP) cannot take up any fresh assignment as an IRP, RP, Liquidator, or Bankruptcy Trustee without a valid Authorisation for Assignment (AFA) issued by their Insolvency Professional Agency (IPA)—such as the Indian Institute of Insolvency Professionals of ICAI (IIIPI), ICSI Institute of Insolvency Professionals (ICSI IIP), or Insolvency Professional Agency of Institute of Cost Accountants of India (IPA ICAI).
Liquidator Remuneration Slabs under Regulation 4(2)(b)
Where the Committee of Creditors (CoC) fails to determine remuneration under Regulation 39D of the CIRP Regulations, the liquidator’s fee is determined as a percentage of the amount realized (net of other liquidation costs) and amount distributed, as prescribed in Regulation 4(2)(b):
| Cumulative Realisation / Distribution Slab | First 6 Months | Next 6 Months | Next 1 Year | Thereafter |
|---|---|---|---|---|
| On the first ₹1 Crore | 5.00% / 2.50% | 3.75% / 1.88% | 2.50% / 1.25% | 1.25% / 0.63% |
| On the next ₹9 Crores (₹1 Cr to ₹10 Cr) | 3.75% / 1.88% | 2.80% / 1.40% | 1.88% / 0.94% | 0.94% / 0.47% |
| On the next ₹40 Crores (₹10 Cr to ₹50 Cr) | 2.50% / 1.25% | 1.88% / 0.94% | 1.25% / 0.63% | 0.63% / 0.31% |
| On the next ₹50 Crores (₹50 Cr to ₹100 Cr) | 1.25% / 0.63% | 0.94% / 0.47% | 0.63% / 0.31% | 0.31% / 0.16% |
| On the amount thereafter (> ₹100 Crores) | 0.25% / 0.13% | 0.19% / 0.10% | 0.13% / 0.06% | 0.06% / 0.03% |
*Note: Format represents: Realisation Rate % / Distribution Rate %. Liquidator remuneration calculations follow the IBBI Clarification Circular dated 28th September 2023 on cumulative realization and distribution values.