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

Last updated: 27 October 2023

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Quick Summary

The Central Goods and Services Tax (Fourth Amendment) Rules, 2023, have been introduced to update existing regulations. These amendments, effective from their publication date, include specific provisions for valuing corporate guarantees provided to banking companies or financial institutions on behalf of related persons. Additionally, the process for issuing orders related to tax demands has been revised to an 'intimation' process, and new time limits have been introduced for certain orders.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
NOTIFICATION
New Delhi, the 26th October, 2023
No. 52/2023 – Central Tax

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.

For full notification please refer to the attachment

FAQ :

The main purpose is to further amend the Central Goods and Services Tax Rules, 2017, introducing specific changes to existing regulations.

These rules come into force on the date of their publication in the Official Gazette, unless otherwise specified within the rules themselves.

The value of such a corporate guarantee is now deemed to be one per cent of the amount of the guarantee or the actual consideration, whichever is higher.

The words 'proper officer shall issue an order' have been substituted with 'proper officer shall issue an intimation' in rule 142(3).

Yes, a period of one year from the date of issuance of an order under sub-rule (1) of rule 159 has been introduced as a condition, or expiry of that period, whichever is earlier.