Central Goods and Services Tax (Fourth Amendment) Rules, 2023

CBIC issued Notification No. 52/2023 – Central Tax on October 26, 2023. This notification introduces important amendments to the Central Goods and Services Tax Rules, 2017 & amends Rule 28, Rule 142, Rule 159, FORM GST REG-01, FORM GST REG-08, FORM GSTR-8, FORM GST PCT-01 and FORM GST DRC-22.

Amendment Highlights

1. Short Title and Commencement The notification formally names the rules as the Central Goods and Services Tax (Fourth Amendment) Rules, 2023. These rules will come into effect from 26th October, 2023. 

2. Rule 28 Amendment Rule 28 of the Central Goods and Services Tax Rules is renumbered as sub-rule (1). Additionally, a new sub-rule (2) is introduced. This sub-rule addresses the value of supply of services by a supplier to a related person, involving the provision of a corporate guarantee to a banking company or financial institution on behalf of the recipient. The value of this supply shall be deemed as one percent of the amount of the guarantee offered or the actual consideration, whichever is higher.

3. Rule 142 Modification In Rule 142, Sub-rule (3) is updated. The term “order” is replaced with “intimation,” indicating a shift in the nature of communication from the proper officer.

4. Rule 159 Adjustment Rule 159, Sub-rule (2) is amended to include that the period for seeking a refund of excess balance in the electronic cash ledger is within one year from the date of issuance of the order under Sub-rule (1) or earlier, whichever applies.

5. FORM GST REG-01 Update In FORM GST REG-01, PART-B, a new clause (xiva) is added to include “One Person Company” as a type of business entity registering under GST.

6. FORM GST REG-08 Revision FORM GST REG-08 is substantially updated to cover the order of cancellation of registration as a Tax Deductor at source or Tax Collector at source. The form outlines the reasons for cancellation and emphasizes the liability to pay tax and other dues even after registration cancellation for the prior period.

7. FORM GSTR-8 Amendments In FORM GSTR-8, serial number 5 is omitted. The section pertaining to interest and late fee payable and paid is revised, with separate entries for interest on TCS and late fees for Central Tax and State/UT Tax. Debit entries in the cash ledger for TCS, interest, and late fee payments are included.

8. FORM GST PCT-01 Modification In FORM GST PCT-01, PART-B, the list of enrolment sought is updated to include additional qualifications, including Chartered Accountants, Company Secretaries, Cost and Management Accountants, and more.

9. FORM GST DRC-22 Alteration A paragraph is added to FORM GST DRC-22, indicating that the order shall cease to have effect either on the date of issuance of an order in FORM GST DRC-23 by the Commissioner or after one year from the date of issuance, whichever is earlier.

Conclusion

The Ministry of Finance’s recent notification, No. 52/2023 – Central Tax, brings forth important amendments to the Central Goods and Services Tax Rules, 2017. These changes impact various aspects of GST, including the valuation of supplies, refund periods, and forms used for registration and compliance. Businesses and professionals working within the GST framework should acquaint themselves with these amendments to ensure compliance and avoid any unintended consequences of the changes.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Notification No. 52/2023 – Central Tax | Dated : 26th October, 2023

G.S.R. 798(E).— In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: —

1. Short title and commencement. — (1) These rules may be called the Central Goods and Services Tax (Fourth Amendment) Rules, 2023.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), rule 28 shall be renumbered as sub-rule (1) and after the sub-rule as so renumbered, the following sub-rule shall be inserted, namely:-

“(2) Notwithstanding anything contained in sub-rule (1), the value of supply of services by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient, shall be deemed to be one per cent of the amount of such guarantee offered, or the actual consideration, whichever is higher.”.

3. In the said rules, in rule 142, in sub-rule (3), for the words “proper officer shall issue an order”, the words “proper officer shall issue an intimation” shall be substituted.

4. In the said rules, in rule 159, in sub-rule (2), after the words “Commissioner to that effect”, the words “or on expiry of a period of one year from the date of issuance of order under sub-rule (1), whichever is earlier,” shall be inserted.

5. In the said rules, in FORM GST REG-01, in PART-B, in serial number 2, after clause (xiv), the following clause shall be inserted, namely:-

“(xiva) One Person Company”.

6. In the said rules, for FORM GST REG-08, the following form shall be substituted, namely:–

“

FORM GST REG-08

[See rule12(3)]

Reference No

Date:

To

Name:

Address:

Application Reference No.(ARN)                                                                                             Date:

Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source

This is in reference to the request raised vide letter/mail dated for cancellation of registration under the Act
due to the following reason, namely:–

i.

ii.

The undersigned is of opinion that the effective date of cancellation of registration is <<DD/MM/YYYY>>.

2. You are required to furnish pending returns immediately.

3. Kindly refer to the supportive document(s) attached for case specific details.

4. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

OR

Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source

This has reference to the show-cause notice issued dated……..

• Whereas no reply to the show cause notice has been submitted,

and whereas, the undersigned based on record available with this office is of the opinion that your registration is liable to be cancelled for the following reason(s) : or

• Whereas reply to the show cause notice has been submitted vide letter dated______,

and whereas, the undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for the following reason(s) :– or

• Whereas no reply to the show cause notice has been submitted and on day fixed for personal hearing, you did not appear in person or through authorised representative,

and whereas, the undersigned based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason(s) : or

• Whereas no reply to the show cause notice has been submitted, but you or authorised representative attended the personal hearing and made a written or verbal submission,

and whereas, the undersigned on examination of your written or verbal submission made during personal hearing and based on record available with this office is of the opinion that your registration is liable to be cancelled for the following reason(s) : or

• Whereas reply to the show cause notice has been submitted vide letter dated______. But, you or authorised representative did not attend the personal hearing on scheduled or extended date. and whereas, the undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for the following reason(s) : or
• Whereas reply to the show cause notice has been submitted vide letter dated______ and you or authorised representative attended the personal hearing, made a written/oral submission during personal hearing. And whereas, the undersigned has examined your reply to show cause notice as well as submissions made at the time of personal hearing and is of the opinion that your registration is liable to be cancelled for the following reason(s):

i.

ii.

The effective date of cancellation of registration is<<DD/MM/YYYY>>.

2. Kindly refer to the supportive document(s) attached for case specific details.

3. You are required to furnish pending returns immediately.

4. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

Place:

Date:

Signature

Name of the Officer

Designation

Jurisdiction”;

7. In the said rules, in FORM GSTR-8,-

(a) serial number 5 shall be omitted;

(b) for serial number 7 and entries relating thereto, the following serial number and entries shall be substituted, namely :–

“7. Interest, late fee payable and paid

c) for serial number 9 and entries relating thereto, the following serial number and entries shall be substituted, namely:–

“9. Debit entries in cash ledger for TCS, interest and late fee payment [to be populated after filing of statement]

8. In the said rules, in FORM GST PCT-01, in PART-B, for serial number 4 and entries relating thereto, the following serial number 4 and entries shall be substituted, namely:-

Note: Sr. No. (4) to (8) of the table should be from an Indian University established by any law for the time being in force.

9. In the said rules, in FORM GST DRC-22, after the last paragraph, the following paragraph shall be inserted, namely:–

“This order shall cease to have effect, on the date of issuance of order in FORM GST DRC-23 by the Commissioner, or on the expiry of a period of one year from the date of issuance of this order, whichever is earlier.”.

[F. No. CBIC-20001/10/2023-GST]

RAGHVENDRA PAL SINGH, Director

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19^th June, 2017, published vide number G.S.R. 610(E), dated the 19^th June, 2017 and were last amended vide notification No. 51/2023 – Central Tax, dated the 29^th September, 2023 published vide number G.S.R. 707(E), dated the 29^th September, 2023.