CBIC Notification 52/2023 Dated. 26 October 2023
CBIC Notification 52/2023: The Central Board of Indirect Taxes and Customs (CBIC) vide its Notification No. 52/2023 dated.26th October 2023 makes the following rules further to amend the CGST Rules 2017. These rules will be called as the central Goods and Services Tax (4th Amendment) Rules 2023 and they shall come into force from the date of their publication in the official gazette.
Let us now delve into the details of these amendments as brought by this CBIC Notification.
1. Amendment in Rule 28 by CBIC (Valuation of Supply between distinct or related persons other than through agents)
“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.”
2. Amendment in Rule 142 by CBIC (Notice and order for demand of amounts payable under the Act)
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. Amendment in Rule 159 by CBIC (Provisional attachment of Property)
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.
4. Amendment in Form GST REG- 01 by CBIC (Application for registration)
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”.
5. Amendment in Form GST REG- 08 by CBIC (Cancellation of Registration of TDS deductor or TCS collector)
For FORM GST REG-08, the new form GST REG- 08 shall be substituted (Readers can find the new form GST REG- 08 in the Notification 52/2023 given in the below Link).
6. Amendment in Form GSTR- 08 by CBIC (Statement of TCS to be filed by E-Commerce Operator)
In FORM GSTR-08,
(a) Serial number 5 shall be omitted;
(b) Entries under serial number 7 shall be substituted by the following entries:
Interest, Late Fee Payable and paid
| Description | Amount Payable | Amount paid |
| 1 | 2 | 3 |
| (I) Interest on account of TCS in respect of | ||
| (a) Integrated tax | ||
| (b) Central Tax | ||
| (c) State/UT Tax | ||
| (II) Late fee | ||
| (a) Central tax | ||
| (b) State / UT tax | ||
(c) Entries under serial number 9 shall be substituted by the following entries:
Debit entries in cash ledger for TCS, interest and late fee payment [to be populated after filing of statement]
| Description | Tax | Interest | Late Fee |
| 1 | 2 | 3 | 4 |
| (a) Integrated tax | |||
| (b) Central Tax | |||
| (c) State/UT Tax |
7. Amendment in Form GST PCT- 01 by CBIC (Application for enrolment as GSTP)
In FORM GST PCT-01, in PART-B, entries under the serial number 4 shall be substituted by the following entries:
| 4 | Enrolment sought: | (1) Chartered Accountant
(2) Company Secretary (3) Cost and Management Accountant (4) Graduate or Postgraduate or its equivalent degree in Law (5) Graduate or Postgraduate or its equivalent degree in Commerce (6) Graduate or Postgraduate or its equivalent degree in Banking including Higher Auditing (7) Graduate or Postgraduate or its equivalent degree in Business Administration (8) Graduate or Postgraduate or its equivalent degree in Business Management (9) Degree examination of any Foreign University recognized by any Indian University (10) Retired Government Officials (11) Sales Tax practitioner under existing law for a period of not less than five years (12) Tax return preparer under existing law for a period of not less than five years (13) Any other examination notified by Government
|
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.
8. Amendment in Form GST DRC- 22 by CBIC (Order of attachment of property)
In FORM GST DRC-22, after the last paragraph, the following paragraph shall be inserted:
“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.”.
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 19th June, 2017, published vide number G.S.R. 610(E), dated the 19th June, 2017 and were last amended vide notification No. 51/2023 – Central Tax, dated the 29th September, 2023 published vide number G.S.R. 707(E), dated the 29th September, 2023.
Note: Rules existing prior to the amendments
Rule 28- Value of supply of goods or services or both between distinct or related persons, other than through an agent
The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall-
(a) be the open market value of such supply;
(b) if the open market value is not available, be the value of supply of goods or services of like kind and quality;
(c) if the value is not determinable under clause (a) or (b), be the value as determined by the application of rule 30 or rule 31, in that order:
Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person:
Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services.
Rule 142- Notice and order for demand of amounts payable under the Act
(1) The proper officer shall serve, along with the
(a) Notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.
[(1A) The [proper officer may], before service of Notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, [communicate] the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A.];
(2) Where, before the service of Notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of subsection (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act [whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A),] he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04 .
[(2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A.]
(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a Notice under sub-rule (1), or where the person concerned makes payment of the amount referred to in sub-section (1) of section 129 within [seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3)], he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said Notice.
(4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 or the reply to any Notice issued under any section whose summary has been uploaded electronically in FORM GST DRC-01 under sub-rule (1) shall be furnished in FORM GST DRC-06.
(5) A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of [tax, interest and penalty, as the case may be, payable by the person concerned].
(6) The order referred to in sub-rule (5) shall be treated as the Notice for recovery.
(7) Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC-08.]
Rule 159- Provisional attachment of property
(1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the details of property which is attached.
(2) The Commissioner shall send a copy of the order of attachment [in FORM GST DRC-22] to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect.
(3) Where the property attached is of perishable or hazardous nature, [and if the person, whose property has been attached] pays an amount equivalent to the market price of such property or the amount that is or may become payable [by such person], whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment.
(4) Where [such person] fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable [such person].
(5) Any person whose property is attached may [file an objection in FORM GST DRC-22A] to the effect that the property attached was or is Not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC- 23.
(6) The Commissioner may, upon being satisfied that the property was, or is No longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23.
To Access the CBIC Notification No.52/2023 CLICK HERE
To Access the “Allahabad High Court verdict-Cancellation of GST Registration can solely occur under Section 29” CLICK HERE
DOWNLOAD THE NOTIFICATION HERE
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