New changes in GST Rules & GST Practitioner rules from 26 October 2023

Notification Number 52/2023 is issued to make changes in GST Rules to implement decisions taken in 52nd GST council meeting.

1) Valuation of Corporate Guarantee: Rule 28

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.”.

New sub-rule (2) in Rule 28 of CGST Rules, 2017:

Taxable value of supply of corporate guarantee provided between related parties:

1% of the amount of such guarantee offered, or

the actual consideration, whichever is higher.

2) Form DRC-05: Rule 142

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.

3) Provisional attachment of property: Rule 159

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.

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.

Provision for automatic restoration of provisionally attached property after completion of one year: The Council has recommended an amendment in sub-rule (2) of Rule 159 of CGST Rules, 2017 and FORM GST DRC-22 to provide that the order for provisional attachment in FORM GST DRC-22 shall not be valid after expiry of one year from the date of the said order.

This will facilitate release of provisionally attached properties after expiry of period of one year, without need for separate specific written order from the Commissioner. 

4) Change in GST Registration Rule:

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

Separate option for one person company while applying for GST Registration

5) New Form GST REG-08 (Order of Cancellation of Registration for TDS/TCS deductors or collectors &

6) Form GSTR-8 to add Tables to levy Late Fee

7) New Criteria for GST Practitioner:

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

Download Notification from below link:

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