Key Updates in the Central Goods and Services Tax (Fourth Amendment) Rules, 2023

Key Amendments:

•A new sub-rule states that the value of services provided by a supplier to a related person (in the form of a corporate guarantee to a bank or financial institution) will be the greater of 1% of the guarantee amount or the actual consideration. (Rule 28)

•Notice and order for demand of amounts payable under the Act. In sub-rule (3), "proper officer shall issue an order" is replaced with "proper officer shall issue an intimation". (Rule 142)

• Provisional attachment of property. In sub-rule (2), an additional condition has been added specifying that the order's effect expires either on a directive from the Commissioner or one year from the order's issuance, whichever is earlier. (Rule 159)

• An addition specifies that the order will cease to have effect either upon issuance of an order in FORM GST DRC-23 by the Commissioner or one year from the order's issuance, whichever is earlier. (FORM GST DRC-22)

• A new category "(xiva) One Person Company," is added in Part B in the application for registration. (FORM GST REG-01)

• There are changes in the FORM GST REG-08 (Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source). Changes include the omission of serial number 5 and updates to serial numbers 7 and 9 related to interest, late fee, and debit entries in the cash ledger. (FORM GST REG-08)

• The enrollment criteria in PART-B are updated to include various professional categories, with specific conditions for degrees obtained from Indian universities for goods and services tax practitioners. (FORM GST PCT-01)

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